Investing in FX is an easy decision to make. The probability and magnitude of profit is, truth be told, more than quite handsome. But to come out with profit is a different thing altogether because it pertains the effects of numerous variables.

AUD/USD was once one of the hottest selling cakes on FX. Today, it is still considered as a good investment option for traders looking for stabilizing their investment. Here’s an attempt towards AUDUSD analysis.

Recent History

Australia saw a massive commodity boom during the onset of this 21s century coinciding with an industrial boom in China primarily caused by the Chinese demands for raw materials. Even in years as late as 2010s, Australia turned out to be a major source for energy for Chinese and Taiwanese industries. With an all-time high near 1.1 in July 2011, AUD seemed to be going from strength to strength.

The later years were characterized by falling prices of raw materials and the Chinese growth at long last coming to a stable graph. Australian economy depends on raw exports. Changes in this market for raw materials, especially crude oil and metals affect the Australian Dollar, thus, subsequently, the current scenario.

AUD/USD at present

There are multiple factors which are having a direct effect on the Aussie economy. Australia as a country itself relies majorly on agriculture and mining. And they’ve just emerged from their own real estate bubble which had a major negative impact on the Aussie market. However, this does appear to be a profitable time for investing in AUD for the long run given that their growth curve has hit a stable bottom. An investment burst is forth coming with Japanese and Taiwanese majors spending high. The South China Sea crisis has also withered enough for maritime trading through it to continue.

The most important factors for an AUDUSD analysis are as follows: 

  • Decreased Asian industrial growth.

  • Declining crude prices.

  • Approximately 22% of the GDP (Gross Domestic Product) relying on agriculture and mining sector.

  • High country current account deficit.

  • High government interest rates.

  • Increased investment into infrastructure.

AUDUSD analysis towards a Future

Experts consider this bearish trend to be quickly gaining momentum into another bullish curve in the coming years. The economy has stabilized with the government investing heavily on infrastructure and on the idea of manufacturing with the resources that are already available on-the-go.

AUDUSD analysis for expects the quote to reach a 15%-22% height by 2018 given that the current variable persist. The country relies heavily on maritime trading, approx. 72% of international by value. Thus further conflicts in and around maritime trading routes used by Australia will again have adverse effects on it.

Crude prices are expected to stay stable with the probability of Australian crude gaining momentum. Raw material exports may pick up from where it left off, and given better future prospects of South-East Asian industries.

Thus, in short, AUDUSD analysis does show that the future looks bright. For any investor attempting stabilize a major, AUD/USD does seem a good investment to make. Forecast show that Aussie dollar has only one way to go and that is forward. So, invest and make the best of it.


The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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