AUD/USD Fundamental Analysis June 26, 2013 Forecast The AUD/USD is trading at 0.9206 this morning as global markets begin to worry about economic and financial problems brewing in China. The negative news surrounding China sent mining firms lower. Miners are sensitive to growth indications on China as the country is a major user of natural resources. The Australian dollar is trading within a narrow range as investors wait for important economic data out of the United States. Yesterday, the Australian dollar dived to 91.48 US cents, its lowest point in almost three years, after a Chinese bank cut its growth forecasts for the world’s second largest economy. But the local unit was buoyed overnight by comments from US Federal Reserve officials who said financial markets had over-reacted to Chairman Ben Bernanke’s statement last week that the central bank could soon start paring back its economic stimulus program. Australia and China, two of the stronger national economies in recent years, are expected to go through a slightly softer patch of growth. Meanwhile, the US economy finally looks like it is starting to recover from the global financial crisis. That good American news has been bad news for the Aussie currency because it means the US Federal Reserve would wind back the bank’s bond purchase program – a form of economic stimulus. Over the past two years, those measures have weakened the US dollar and why the Aussie was above parity for most of that time. The US dollar continues to gain momentum weighing heavily on the Asian currencies.
Posted on: Tue, 25 Jun 2013 11:49:48 +0000
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