Menu
Brokers
MT4 Forex Brokers
MT5 Forex brokers
PayPal Brokers
Skrill Brokers
Oil Trading Brokers
Gold Trading Brokers
Web Browser Platform
Brokers with CFD Trading
ECN Brokers
Bitcoin FX Brokers
PAMM Forex Brokers
With Cent Accounts
With High Leverage
Cryptocurrency Brokers
Forums
All threads
New threads
New posts
Trending
Search forums
What's new
New threads
New posts
Latest activity
Log in
Register
Search
Search titles only
By:
Search titles only
By:
Menu
Install the app
Install
Reply to thread
Forums
Forex Discussions
Fundamental Analysis
Australian dollar may hit US65c
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Message
[QUOTE="FIBO_Group, post: 122883, member: 38180"] The Australian dollar’s run as one of the best performing currencies this year may be coming to an end on the back of weaker commodity prices and rate cut expectations over the past week. At 7.29pm (GMT) the Aussie dollar was trading at US75.59c down from US76.75c in yesterday’s trading. Iron ore prices are off almost 4 percent since reaching a 24-month high last week, and coupled together with disappointing export and trade balance figures release earlier today, the writing may be on the wall for the Australian dollar. The disappointing export figures are mainly attributed to China, Australia’s biggest trading partner with the biggest culprit being a reduced demand for Iron ore. Any slowdown in China would be disastrous for the Australian economy. Ever since last week analysts and government officials alike such as Reserve Bank of Australia Governor Philip Lowe ,who noted the investors shouldn’t get used to Australia’s biggest export hanging around the $90 mark, “I do think that commodity prices are going to come back off again,” Lowe [URL='https://www.bloomberg.com/news/articles/2017-02-24/iron-ore-hit-with-reality-check-as-prices-have-risen-too-fast']told[/URL] a parliamentary panel last Friday. “We shouldn’t start to think that the iron ore price is going to stay around $90.” He added. Another factor hurting the Australian dollar at the moment against it’s American counterpart is expectations that the RBA will have to lower interest rates too boost inflation, which will bring the benchmark interest rate on par or even lower than in the US, Paul Dales, chief Australia and New Zealand economist for Capital Economics predicts that interest rates in Australia as well as the Aussie dollar are headed much lower, “The RBA won’t raise rates in 2017 or likely in 2018, and I wouldn’t be putting much money on a hike in 2019 either. In fact, with the housing market slowing, the labour market weakening and inflation staying below target it’s possible that there will be cuts this year to 1 percent” he said. “We also think the Australian dollar could fall from US77c today to around US65c because of RBA rate cuts, a stronger US dollar thanks to Trump’s expansionary plans for the world’s biggest economy and falling commodity prices.” he added. [/QUOTE]
Insert quotes…
Verification
Post reply
Top
Bottom
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.
Accept
Learn more…