The next year should be rather positive for the Australian dollar, with a multitude of reasons pointing and that direction. The market has been very negative for several years, but we have finally seen a certain amount of bullish news coming into play, and that should continue to push the Aussie higher. After all, it is at very historic low pricing, and therefore it makes quite a bit of sense that the Australian dollar bounces from current levels.
The United States and China are getting close to signing the “phase 1 deal”, slated for January 15. The Australians provide a lot of the hard materials such as iron, copper, and gold for the Chinese economy, so therefore as it goes, so goes Australia. We have recently seen the market break above the 0.70 level, which of course has a certain amount of psychological importance attached to it. We have also broken above a major downtrend line, a bullish turn of events as well.
Ultimately, the Australian dollar should continue to benefit due to the Chinese and the Americans working closer together, and perhaps even tariffs being at the very least put on hold, or perhaps even more so if the tariffs get rolled back. Tariffs cause a lot of havoc when it comes to profits, and of course economic growth. As things cool off, we will start to see Australia export much more in the way of hard commodities, thereby driving up demand for the Australian dollar. Copper markets have already shown a proclivity to go higher, so therefore it should continue to drag the Aussie dollar right along with it. In fact, it would not be surprising at all to see the Australian dollar above the 0.75 level by the end of the year, if not higher than that. All things being equal, the market should bounce anyway, as we had recently hit the same low area that we were at during the financial crisis.
The United States and China are getting close to signing the “phase 1 deal”, slated for January 15. The Australians provide a lot of the hard materials such as iron, copper, and gold for the Chinese economy, so therefore as it goes, so goes Australia. We have recently seen the market break above the 0.70 level, which of course has a certain amount of psychological importance attached to it. We have also broken above a major downtrend line, a bullish turn of events as well.
Ultimately, the Australian dollar should continue to benefit due to the Chinese and the Americans working closer together, and perhaps even tariffs being at the very least put on hold, or perhaps even more so if the tariffs get rolled back. Tariffs cause a lot of havoc when it comes to profits, and of course economic growth. As things cool off, we will start to see Australia export much more in the way of hard commodities, thereby driving up demand for the Australian dollar. Copper markets have already shown a proclivity to go higher, so therefore it should continue to drag the Aussie dollar right along with it. In fact, it would not be surprising at all to see the Australian dollar above the 0.75 level by the end of the year, if not higher than that. All things being equal, the market should bounce anyway, as we had recently hit the same low area that we were at during the financial crisis.