Australian Dollar and Canadian Dollar Interval Forecast – The Correlation Between Them

AUDUSD

Australian Dollar and Canadian Dollar Interval Forecast – The Correlation Between Them

The Australian Dollar (AUD) and US Dollar (USDCAD) are the three major currencies in world markets today. The Australian Dollar is weak against the USD, while the US Dollar and the UK Pound Sterling are strong. In addition, many other currencies including Eurozone (ECU) and Japanese Yen (JPY) are weakening against these three major currencies. This has resulted in a sharp increase in trading between the major world currencies on Forex. This article will discuss the recent trends of the Australian Dollar, US Dollar and GBPUSD (UK Pound Sterling).

Recent USDCAD weakness against all other major commodities currency pairs was a surprise to most traders. The price action of the USDCAD did not indicate any significant move against the AUS, which is normally the sellers move. AUDUSD had a minor retracement against the US Dollar after the August break, but it quickly reversed itself and moved in a new direction. The price action of the other two commodity currency pairs (AUSCHF and NZDUSD) were within their range and this is usually a good sign that the market participants are waiting for an Informational signal from the market leaders. For most investors, USDCAD volatility signifies a sell signal to start selling the AUS or NZD. It may be too early to enter into the market with the expectation of huge gains as the price action is still very volatile.

The EURUSD, GBPUSD, and NZDUSD (terrific name for the four currency pairs) have been trading broadly in the same direction since the summer. EURUSD has started breaking lower with the help of a few important technical indicators. These include the European Commission (ECO), European Central Bank (ECB), and International Monetary Fund (IMF). Forecasts by some prominent European and US Economic Experts have also indicated a possible move towards a European Debt Crisis (Growth in Europe). The key point here is that the EURUSD has not been taking the lead and may be starting a recovery phase, whereas the other currency pairs are indicating strong growth in the past weeks and months.

The American Dollar Index (ADX) is the most widely traded stock index in the world today. It is widely regarded as a premier North American economic indicator, especially by those investors who trade the dollar on the over the counter market and are primarily focused on the quality of the US economy. For the most part, this perception is correct. But there are a few points that need to be clarified before you invest in any stock and this is what this article intends to do. We will discuss the most popular North American Dollar Index (ADX) here.

There are four major pairs of commodity crosses that are traded on the over the counter market: The AUDUSD (American Dollar Indexed Bonds SPX), AUDGBP (American Dollar Bonded Short ETF), GBD (Great British Pound Sterling), and USDUSD (U.S. Dollar Indexed Bonds SPX). The most bullish trading times are typically characterized by bullish commodity crosses that occur during the bullish economic cycles. Generally speaking, during the recent uptrend, these pairs of commodity crosses generally rise in price to over the current interbank pricing range. The current uptrend is being supported by the rising price of oil, commodities, and metals. In fact, the price of gold has already surpassed the $1 trillion level and is expected to reach the all-time high in the coming months.

On the other hand, during the bearish trading times, the price of these commodities tend to fall to below the previous interbank pricing range. The current bearish trading period is characterized by the global financial crisis, increasing unemployment rate, and declining gross domestic product growth. This means that over the last two to three years, Canadian and US stocks have been quite weak and have experienced weakness in their respective market performance. Most traders expect that over the coming two to three years, the US economy will recover while Canada’s economy will remain on a soft recovery.

The current analysis of AUDUSD shows that the market sentiments favor the US Dollar. The market analysis also indicates that the CAD/USD (CAD USD/CAD) and AUDUSD (AUSUSD) have high levels of correlation. When looking at the historical data, we can see that the correlation between the CAD/USD (AUSUSD) and AUDUSD (CAD USD), which were weaker than the current, have a weak positive correlation.

When looking at the technical chart of the AUDUSD (AUSUSD), there are some possible divergence signals that we can identify. The two candlesticks, which are in the form of box and rectangle, indicate that the moving averages are slowly drifting apart. On the other hand, there is a strong bullish signal in the form of the double top. This occurs when the opening prices are higher than the closing prices. The strength of this bullish signal can be used to profit from the Australian Dollar is the US Dollar continues to weaken and the Australian Dollar strengthens.