News

Bullishness in Aussie and the Causing Fundamentals..!!!

4 months agoBySylvester Stephen

Aussie edges higher against the Greenback to trade at 0.7372, adding more than 200 pips in the first two weeks of Jan 2017. Interestingly, the pair has maintained bullish momentum for 5 consecutive Days. If you are still wondering whether the movement is caused by a stronger Aussie or a weaker Greenback, the answer is BOTH.

Elaborating fundamentally, the reason behind a slight reversal in the trend of U.S Dollar is Non-Farm Employment Change as well as the Unemployment Rate that was released on Friday. Investors started the New Year with a bearish bias and initiated taking profits, causing weakness in the Greenback.

Besides, Aussie the commodity currency remained supported on rising prices of a yellow metal as the Gold soared to trade at $1190 after placing a low of $1125 in the 3rd week of December. Australia being a 2nd biggest producer of Gold maintains a highly positive correlation between the Australian Dollar and Gold.

Furthermore, the economic events from China and Australia underpinned Aussie, the single currency among its peers. Just to remind, China has been a major business partner of Australia, and highly impacts the business activities. Whereas, the Chinese economic events play their role in the valuation of the Australian Dollar. Chinese consumer inflation accelerated at a moderate but steady speed, while the Producer Price Index improved sharply, leading to enhanced productivity and growth in the economy. Moreover, as per the National Bureau of Statistic, the Inflation figures (CPI) also improved to 2.1% in December, after soaring to 2.3% in November.

Besides, knowing about the Australian fundamentals, according to the Australian Bureau of Statistics (ABS), the seasonally adjusted retail turnover advanced 0.2% in the month of November 2016. This follows a rise of 0.5 per cent in October 2016. More precisely, in seasonally adjusted terms, there was growth in food retailing (0.4%), apparel, footwear and individual accessory retailing (1.7%) including household goods retailing (0.2%). There were lapses in restaurants, takeaway and cafe services (-0.8%), and last department stores (-0.3%).

Lastly, in the week ahead, investors are likely to focus on Fed Chair Yellen Speaks, Retail Sales, and PPI figures to predict the next movement in the pair. Whereas Australia is not likely to release any economic event, but investors will consider the yellow metal to determine further trends in Aussie.
For more detailed analysis from the author, please visit NoaFX.

More News

North Korea’s Defiance of Trump Pushes Gold to Forefront

Gold is likely to be in focus this week after taking a backseat last week to the French elections, central bank meetings, and U.S. policy announcements. Pushing it back to the forefront will be the possibility of escalating military activity in North Korea based on events over the week-end. Demand for the safe-haven metal fell … Continue reading North Korea’s Defiance of Trump Pushes Gold to Forefront

4 Things You Need to Know Before the Market Opens

The French elections pushed global markets to record highs and postponed investors’ concerns for another week. The Euro climbed versus the US dollar after a long time of consolidation as Emmanuel Macron’s victory in the first round put at ease the European political uncertainty. Safe haven assets prices also dropped, and currently the markets major concern … Continue reading 4 Things You Need to Know Before the Market Opens

Stockpair - Best Customer Support Service

Interview with Awarded Broker – Stockpair

Below is an interview with the ‘Best Customer Support Service 2016‘ awarded broker – Stockpair. Stockpair Review: “Stockpair is a binary options broker that specializes in offering retail financial traders a fuss free way to trade the financial markets. The unique thing about Stockpair is the fact that they specialize in pair options. In fact, … Continue reading Interview with Awarded Broker – Stockpair

Kiwi Plunges on Trump Trade Policy Concerns

The New Zealand Dollar also fell under pressure despite the rise in demand for risky assets. It tumbled to its lowest level of the year in reaction to concerns over the Trump Administration’s trade policy. The NZD/USD ended the week at .6859, down 0.0168 or -2.40%. New Zealand Dollar traders reacted negatively to the news … Continue reading Kiwi Plunges on Trump Trade Policy Concerns

U.S. GDP Comes in Below Expectations at 0.7 Percent

The U.S. economy sputtered in the first quarter of Donald Trump’s presidency, growing at the slowest pace in three years while serving as a reminder of the fragility of the nation’s economy. According to the Commerce Department, U.S. Gross Domestic Product grew at a 0.7% annual rate in the first quarter from the preceding three … Continue reading U.S. GDP Comes in Below Expectations at 0.7 Percent

Euro Jumps on Surprise EU Inflation Figures

European stock markets are mixed, with the FTSE 100 underperforming following weaker than expected Q1 GDP numbers which will give the BoE some room before having to tighten rates. Eurozone markets managed to stabilized and are posting modest gains. It is the DAX that is underperforming flat on the day, while MIB and IBEX are … Continue reading Euro Jumps on Surprise EU Inflation Figures

Expand Your Knowledge

Can Le Pen Make France Great Again?

The Story of Marine Le Pen

Marine Le Pen, the president of the National Front, is not just a politician, but also a layer taking France by storm at the age of 48, young when compared with the Establishment. Sarkozy, Fillon and Hollande all 62 years of age with only center-left Macron her junior at the age of 39. Marine Le … Continue reading The Story of Marine Le Pen

Coffee Beans

How do You Like Your Coffee?

Long before the Pepsi’s and Coke’s of the world, more than 300 years ago, to be precise, people found about the leaves of a plant which had a nice taste and seemed to give them a lot of energy when eaten as such or when they brewed and drunk it. This was from a plant … Continue reading How do You Like Your Coffee?

Crude Oil Affects Your Wallet

How Do Oil Prices Affect Your Wallet?

It is important for everyone to keep an eye on the live oil prices as it affects a large part of our life on a day to day basis. One of the main reasons for this fact is that unlike other commodities like gold, silver, diamond etc., oil is an essential commodity and considering its … Continue reading How Do Oil Prices Affect Your Wallet?

How Does a Country’s Gold Reserve Affect its Economy?

Last month I watched one of James Bond’s movies called ‘Golden Finger’, which was produced in 1964. The story was about a villain who wanted to contaminate the US gold reserve in Fort Knox, his notion was to save gold bullions that will eventually multiply its price. As I was watching this movie, I wondered about the … Continue reading How Does a Country’s Gold Reserve Affect its Economy?

One economic bubble that springs to mind is U.S student loans

Economic Bubble – The History, The Reasons and The Future

The Bubble History No bubbles, no troubles used to be a phrase used to describe the effects of carbonated drinks, but has since evolved to simply mean ‘no troubles.’ Perhaps quite apt when considering the global markets and the evolution and impact of bubbles on global markets, economies and investor capital. There’s been plenty of … Continue reading Economic Bubble – The History, The Reasons and The Future

Fashion industry provides good opportunities

Investing in Fashion

Popular trends of daily life style in clothing, footwear, accessories, makeup, body, or furniture are commonly known as fashion. Since ancient times, in majority of the cultures (around the world) these life style trends also indicate the social status achieved by the members of the society. Historical evidence tells that influential men and women of … Continue reading Investing in Fashion

See All

FX Empire - the company, employees, subsidiaries and associates, are not liable nor shall they be held liable jointly or severally for any loss or damage as link result of reliance on the information provided on this website. The data contained in this website is not necessarily provided in real-time nor is it necessarily accurate.
FX Empire may receive compensation from the companies featured on the network.

All prices herein are provided by market makers and not by exchanges. As such prices may not be accurate and they may differ from the actual market price. FX Empire bears no responsibility for any trading losses you might incur as link result of using any data within the FX Empire.