The Australian Dollar and the US Dollar pair are considered as one of the major currency pairs. This pair is also known as the most popular and traded currency pairs across the world. The popularity of this pair soared because most of the traders were attracted to interest rate differential of this particular pair.
AUD vs USD forecast are mainly projected using an autoregressive integrated moving average model (ARIMA). Experts analysed past behaviour of Australian Dollar using huge amounts of historical data and they also attuned measurements of econometric model by taking into account future expectations and assessments of the analysts.
Critical analysis of Australian dollar to USD forecast
Australian dollar peaked at 1.10 against US dollar, and it was since 2013 April value depreciated significantly. The decline in the value of the currency pair equals the decline in the price of Australia’s key export possessions ranging from coal, Iron ore to copper.
Forex forecast AUD also suggested that one of the major drivers for the devaluation of currency is the Reserve Bank of Australia (RBA). The institution coupled with incessant cuts in interest rates cuts and undesirable emotion in the market on the forthcoming progress of the Chinese economy.
Australia is considered to be a vulnerable economy with no exchange rate control system. It is evident that during commodity affluent the worth of key export freights priced in US dollars were exaggerated by China. And post-sale, most of the returns were transformed back to Australian dollars.
How to do AUD vs USD forecast?
Usually, there are two most important and widely used methods available in market to do forecasting exchange rates, and they are:
This is a kind of approach in which the sentiments of an investor determines the changes kin the exchange rate. The decisions are made by making a chart of the patterns. Along with all these, there are some other factors used in this approach and they are moving-average trend seeking trades rules, positioning surveys, forex dealers and customer flow data. AUD vs USD forecast today can be easily done using this approach.
This is a kind of approach which utilises elementary data related to a country like inflation rates, GDP, balance of trade, unemployment rate, productivity, etc. The basic principle is that the true worth of a currency will eventually be realised at some point of time. This approach is also suitable for long-term investments. So, traders can do AUD to USD exchange rate forecast using this approach.
Different models to do foreign exchange forecasting
There are different types of methods available for forecasting exchange rates, possibly because none of them has shown to be superior to any other. In this, the readers will be able to go through different types of forex forecasting methods. These methods can also be used for AUD vs USD forecast.
Relative Economic Strength Approach
Time Series Model
Purchasing Power Parity model (PPP)
Hopefully, you have gained some vital knowledge about the topic forex forecasting. So, don’t waste your time, use your skill, join forex trading business and supplement your income.