The unique nature of Australia is also rich in minerals such as mining industry accounts for 19% of

The year is 2001. You can not swap an Australian dollar coin even for 0.50 U.S. dollar cents. 10 years later the value of the Australian grew by 120% - a huge number of Forex market. What happened and why, despite this until recently investors were rushing to exchange Australian dollar to any other currency? Is depletion potential favorite carry-currency traders or interesting yet?
Factors that most influence the price of the Australian dollar, are: - The price of raw materials such as gold, iron and copper - the interest 324 of the Australian central bank - the risk appetite of investors
The unique nature of Australia is also rich in minerals such as mining industry accounts for 19% of the whole Australian 324 GDP. Hence the relationship between the value of the national 324 currency 324 and gold prices, plus many of the metals used construction. Given its geographical location Australia mainly exports raw materials to China, Japan, 324 India, South Korea and the United States. For years Australian copper, iron and coal fueled the growth of Asian economies. Even in the midst of the global financial crisis, the growth of China's GDP does not fall below 6%. A demand for raw materials is constantly growing. We all know what heights to get the price of gold in less than a decade. Exports of soaring 324 raw materials is one of the factors that helped the Australian economy to maintain steady GDP growth, low unemployment and moderate inflation levels in the period 2001-2013. 324
Something more. Australia's central 324 bank could afford a significant increase in interest rates. At historically low unemployment, rising household wealth and good economic times there is no need for Australia to further stimulate the economy with lower interest rates. This would then have far greater flexibility for possible concussion in the financial sector, as unfortunately late. Just before the collapse of Lehmon Brothers interest of the Australian dollar is 7.25%, which is the highest percentage among the major currencies in the world. Anyone who bought the Australian 324 dollar against their own currencies received positive interest rate differential. So currency pairs like AUD / USD, EUR / AUD, GBP / AUD, especially AUD / JPY wear day after day perks traders with long positions.
Finally - risk appetite is also a factor increasing demand 324 for the Australian currency. In the years in which investors feel secure, the U.S. dollar and Japanese yen lost its attractiveness. So more money is directed to capital markets and to more exotic currencies with higher interest rates. It is enough to look at the chart of AUD / JPY.
Clearly shows how the boom years from 2001 to 2007 the couple is attractive uptrend. Then something amazing 324 happens. All of the growth from 57.00 to 107.00 compensate for a mere three months. 324 It is capable of this stampede of risk.
What is happening 324 today? After a series of interest rate decreases the Australian dollar is now a historical low of just 2.50%. Without 324 even seeing decline in S & P 500 at the beginning of the year, the Australian slid 1730 wrote against the U.S. dollar. Is just like gold here and experiencing another bubble that burst in the financial markets?
From a technical perspective, the break down of consolidation from 2011 is very negative signal by the potential of this figure is far from exhausted. The only good news is that the couple was able to recover relatively quickly almost 50% of their losses. In technical analysis, correction greater than 61.80% (including the famous Italian mathematician Leonardo Fibonacci) casts doubt on the strength of a movement. That is, if we see values above parity at 1.0000 AUD / USD might trust and willingness to risk investors will ultimately prevail. But a small change in a relatively positive foundation in combination with controversial technical picture will suffice for induction of new drop with no less force.
Personally, I expect the pair in one way or another to reach 0.8000 in the next two years. This would not be the end of the uptrend in the Australian dollar 324 in the long run, even less so of carry-trade in that currency. Just needed a correction obviously overvalued currency. Whether it happens now or only after a new high above $ 1.10 for the first Australian - no one can say for sure. Ultimately, greed and the desire for profits moving financial world. Not once market participants 324 have witnessed ridiculously large market bubbles.
Author: Jordan Kaloyanchev investment firm Carroll Category: Forex and global 324 markets. Date: 24/10/2013 by Jordan Kaloyanchev investment firm Carroll Keywords: AUD / USD, forex, Australian dollar carry trade, financial bubble
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