Canadian Dollar Slides as Poor Market Sentiment Weakens Commodities
Mexican Peso Pares Gains on Fears of Global Economic Slowdown
Aussie Rebounds on Positive Outlook for Australia’s Economy
The Australian dollar rebounded today after yesterday’s decline as the positive outlook for Australia’s economy damped the negative effect of the European crisis on the attractiveness of the currency.
Concerns about the debt issues in the countries of the European Union have led to interest rate cuts by the Reserve Bank of Australia. That made the Aussie weaker. Yet the cut were followed by positive macroeconomic data, causing speculations that the Australian economy is strong enough to weather the crisis in Europe. The optimistic outlook allowed the Australian currency rebound.
AUD/USD was up from 1.0007 to 1.0048 as of 10:56 GMT today. EUR/USD dropped from 1.2490 to 1.2430.
If you have any questions, comments or opinions regarding the Australian Dollar, feel free to post them using the commentary form below.
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Earlier News About the Australian Dollar:
- Aussie Rallies on Hopes for QE3 (2012-06-23)
- Aussie Drops with Global Equities (2012-06-22)
- Aussie Flat as News from USA & Europe Mixed (2012-06-20)
- Australian Dollar Gains Amid Renewed Optimism of Forex Traders (2012-06-19)
- Australian Dollar Rises Even Amid Negative Sentiment on FX Market (2012-06-18)
3 Comments
Hello. I’m currently doing a school project on investing/trading in the foreign currency (FX) market and my group has been chosen to monitor the AUD/SGD market.
I am to assume a position size of 5 million AUD and make a trading decision, i.e. to take a long or short position in the currency by the end of the week.
I will then hold that position for the next 10 days. After which, I will close my position.
So what do you think I should do with the way the market is headed? Go long or Go short?
Currently, it is almost impossible to predict how the Aussie will perform by the end of the week. This week’s EU summit may have a very big impact on currencies and it is better to wait till the end of the week to see the reaction of the Forex market on the outcome of the summit. If the reaction will be positive, then AUD would likely to be strong next week. Unfortunately, it is possible that the said reaction would become clear only on Monday.
I’d go short on AUD/SGD in long-term. For a shorter term it is very tricky.