Forex Trading – What Is the Future of AUDUSD?
The acronym AUSUD can be seen a lot when it comes to talking about the New Zealand Dollar (NZDUSD). There has been some speculation that the NZDUSD will follow suit and copy the success of the Australian Dollar (AUSud) which has surged in recent years. This is of course a very speculatory argument and no one has claimed that the NZDUSD will emulate the performance of AUSud.
The reason that many investors have become so obsessed with AUDUSD is the fact that the Australian Dollar has lost ground against the US Dollar in recent years. It has dropped from a high of around 80 cents to the current level of around seventy cents. If you are an Australian investor, you are probably wondering what is happening in your own country. If you are thinking about investing in the New Zealand Stock Market (or any other international markets for that matter), then you are probably as interested as the rest of the world to see how the AUDUSD is performing.
So, what is happening in Australia and New Zealand? Well, the two main political parties have decided to create a new unit of money, the Reserve Bank of Australia (RBA), which is based on the US Dollar. The Reserve Bank of Australia (RBA) has also decided to remove the float price for the Australian Dollar. This means that instead of being able to trade the AUDUSD against the US Dollar, you will now be able to trade it against another major currency.
In its place is now the US Dollar. Now, I am not saying that the AUDUSD has made a mistake or that it is not a good investment. I’m just saying that it is a different type of currency than the one that was removed. I would like to point out, however, that this move by the RBA is not a fundamental change in the way that they do business. The Reserve Bank of Australia has been using the Australian Dollar since July 1997. Since then, the Australian Dollar has consistently performed significantly better than the US Dollar, in terms of its performance against major economic indicators.
The current status of the market in Australia and New Zealand is quite interesting. The Forex markets are in positive divergence. In other words, they are diverging from their long term averages. In the United States, this would suggest a continuation of the current trend, but it would also imply a continuation of the US Dollar’s performance against major currencies.
If you look at the Forex charts, you can see that over the last five years, the major currency pairs have been trending up. On the average, they are now making similar gains. This means that there are many opportunities for investors to buy into AUDUSD if you know what to look for. AUDUSD has recently experienced its highest trading volume over the past few months. This is because China has decided to make its own offshore financial products using the renminbi as legal tender.
At the same time, the AUDUSD has lost ground against most major currencies. This means that over the last two years, AUDUSD has decreased in value against the US Dollar. However, this trend has reversed recently. In fact, the current round of depreciation is much more severe than what occurred during the last two market recessions. If this continues, it will certainly have a significant impact on the value of the Australian Dollar.
In addition to this, if you consider the international experience, you will see that the strength of AUDUSD is not unique to the Forex market. In fact, this is the opposite of what happened during the global financial crisis. During this period, several other currencies lost significant value against the US Dollar. The main reason was very obvious: panic buying of the dollars by large investors.