Home AUD: ‘Out Of The Gate’ But Time For Bulls To
Daily Look

AUD: ‘Out Of The Gate’ But Time For Bulls To

AUD/USD managed to recover from the lows, riding on positive Chinese data  among other things. What’s next?

Here is their view, courtesy of eFXnews:

The Australian dollar has been the clear winner over the first fortnight of the year, with stronger iron ore, copper, and coal prices pushing the currency to the top of the leaderboard. But  it might be time for Aussie bulls to take some gains.

Iron ore will be susceptible to the prospect of additional supply this year, while elevated levels of household debt are likely to restrain consumption in 2017. But the biggest risk to the currency emanates from outside its borders. China continues to sell reserves, but the yuan continues its slow bleed.

Further yuan depreciation will hurt Australia’s exports, of which more than 40% go to China, and a bumpier ride in 2017 for the Middle Kingdom would be even worse.

For lots  more FX trades from major banks, sign up to eFXplus

By signing up to eFXplus via the link above, you are directly supporting  Forex Crunch.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.