There is a massive economic effect expected after the end of the month on the Australian Dollar and Euro. These are two of the major international currencies traded on the Forex. They are both used to pay for international commercial transactions every day. Let us explore why these currencies may fall after the end of the month.
First, we will examine the Australian Dollar and Euro. The Euro is falling against the Australian Dollar, because the European Commission and European governments are thinking that Europe can provide support to the Italian and Greek Islands if they default. If this happens, the European Union will lose its remaining financial resources. The Italian Government is trying to manage its debt using the newly acquired money, which means it has to rely on the markets to pay its bills. Meanwhile, Greece is in deep trouble with regards to its ability to make payments. This is causing the Greek economy to collapse.
In addition, investors are pulling out their money from both the EUR/AUS and the USD. The Australian Dollar is rising against the Euro because the Chinese are dumping large amounts of commodities into the European market in the hopes that Europe will purchase more from China and other suppliers. China likes to buy European goods so they will dump their products to the European market to increase their own market share. Meanwhile, the Australian Dollar has dropped against the Dollar due to a variety of reasons, including the slowing economy in the United States, concerns about the health of the Japanese economy, and the falling oil prices.
Now let’s examine the Australian Dollar and the Euro. The Euro is expected to weaken against the Dollar due to lower exports and weaker financial flows in the European Union. However, Europe is an export market and there are still many sectors of the economy that are robust. Additionally, the banking system in Europe is considered to be sound and Europe as a whole is considered to be a safe place to invest.
Meanwhile, the Australian Dollar is expected to strengthen versus the Dollar due to the weak financial flows in Japan. The Australian Dollar is also closely tied to the price of oil, which is very high now due to the oversupply. The recent spike in the price of oil is causing problems for many oil producing nations including Australia, which is heavily dependent on the price of oil. Recently, Australia’s government passed legislation making it easier for offshore oil companies to access and buy its petroleum.
This situation has caused a massive reaction in the Forex markets with many investors rushing to get in on the action. The main problem now is how to predict which way these currencies will move in relation to one another. One good thing to know about forex trading is that it is always the case that a currency will fall or rise in relation to another. However, what you need to do is learn to read the charts better and determine whether or not you should trade a particular currency.
To determine this, you will need to know some basic information first. For instance, you should know the general trend of each of the currency pairs by looking at the longer term historical data. The longer the time frame studied, the better the accuracy of your forecast. The strength of a currency usually peaks during a bullish market and falls sharply during a bearish market. If you want to get a good view of the trend of the Australian Dollar, the best thing to do would be to look at the daily trading values of the Aussie Dollar and compare them with the daily numbers for the US Dollar and the Euro.
Another important point to note is that the strength or weakness of the market does not only depend on trends, but also on the current status of each country. For instance, if there is a war going on somewhere, then traders are generally advised to stay away from the currencies which are weaker in relation to the others. However, if you are sure that the war is short lived, then you can get yourself involved in the stronger currency. Keep this in mind when trading, because the market might turn around in your favor in just a few hours. But you should be aware that there is no guarantee when it comes to predicting the movement of the market