The Australian dollar has continued its recent upward trend against the US dollar. This morning the AUD was trading at $0.81 against the greenback.
You might think the currency market is an orderly process for exchanging dollars, yen and euros as trade settles around the world.
Learn why it’s more accurate to think of the currency market as a freewheeling, unregulated and dynamic zone open to interventions, rigging and fixes.
It can lead to all sorts of traps for the unwary investor. Brokers, investment firms, speculators and central banks are all trying to get the market going their way. We try to make sure you’re on the right side of the trade.
If interest rates rise, then the price of gold could fall below US$1,100 — or lower — depending on how aggressive the Fed become. The further the rates go up, the more gold prices will suffer.
One of the strangest things to happen recently was that the government of Switzerland, of all places, has refused to allow big depositors to withdraw cash.
If you see more follow through buying this week, it could indicate the start of a trend change in gold and the beginning of the end of a long bear market.
China’s strategy won’t have immediate implications. This is a long term plan. But if you’re a US strategic planner, you should be worried.
In the era of currency wars, the last thing any central bank or government wants is for their currency to rise.
The decline of the Russian rouble is having a negative impact on Australian thermal coal exports in the Asia-Pacific region. Once the sole domain of Australian and Indonesia coal, the Asia Pacific region is now importing Russian coal at an increasing rate.
The Aussie dollar, commodity currencies and commodities more generally are all beneficiaries of this current unwind. The question is, how long will it run?
The benchmark iron ore price dropped 2.6% yesterday to US$55.48 per tonne. It may get some sort of Fed induced reprieve in today’s trade but I doubt it.
The weaker than expected retail sales in the US put a very small dent in the US dollar rally, which may have given the stock market a boost too.
The Federal Reserve is no longer buying bonds to prop up financial assets. It doesn’t have to. The Europeans and Japanese are on the case.
The next bullish phase of the commodities super cycle will start in 2016. Resource prices will eventually rally with the bullish US dollar next year.
In overnight trade, the Australian dollar fell more than one cent against the greenback, which is a massive decline in the world of foreign exchange.
US dollar bears will come out growling when corrections occur…but the charts are telling you to expect a major rally in the US dollar index.