AUD USD BUY (AUSTRALIAN DOLLAR - US DOLLAR)
Hi there.
Short term bias is remain total to the downside due to the strength on the dollar but in the medium term our bias is still firmly to the upside and these are the fundamental reasons:
*Australia is an open economy and its currency is considered as a pro cyclical asset. It’s a very good environment for the economy and the currency in this current economic climate when the market thinks in that early post recession economic recovery phase and expecting for the re bouncing growth, inflation and demand.
Now, we expect the market’s overall risk tone and performance in commodities to remain the dominant driver and influence for AUD going forward. Of course, pay close attention to global progress in containing and managing the coronavirus outbreak too.
Short term bias is remain total to the downside due to the strength on the dollar but in the medium term our bias is still firmly to the upside and these are the fundamental reasons:
*Australia is an open economy and its currency is considered as a pro cyclical asset. It’s a very good environment for the economy and the currency in this current economic climate when the market thinks in that early post recession economic recovery phase and expecting for the re bouncing growth, inflation and demand.
Now, we expect the market’s overall risk tone and performance in commodities to remain the dominant driver and influence for AUD going forward. Of course, pay close attention to global progress in containing and managing the coronavirus outbreak too.