Aussie Dollar Struggling Hard To Retain Its Bullish Momentum

The Aussie dollar has been sliding lower in the global market after hitting the critical resistance level at 0.77491. Most of the leading Aussie investors made a decent profit by shorting the pair with the bearish price action confirmation signal. The pair exhibited a strong bearish momentum in the global market but it found some decent support near 0.73349 in the global market. According to the leading economist, the Aussie dollar might rally Furthermore in near future as the recent performance of the U.S economy is not up to the market. The green bucks have lost most of its bullish strength in the global market from the very beginning of the year 2017.Despite the strong sell off in the green buck, the optimistic dollar bulls are still in hope as FED chairperson Janet Yellen has projected three possible rate hike in the year 2017.

Weak performance in the Aussie economy: Though the Aussie dollar has been doing relatively well against the mighty U.S dollar the statistics suggest that the performance of the Aussie economy in the equity market is extremely bad for the last three months. The recent drop in the price of iron ore has created a strong doubt into the investor’s mind regarding the rate cut decision by the Reserve Bank of Australia. Some of the leading economists are thinking that the Aussie economy will struggle Furthermore in near future as the performance of the retail stocks is going to create a direct obstacle in the global market to increase the infrastructure spending. If things continue like this then we will see a sharp decline in the Aussie economy and the traders will have a tough time in the CFD trading industry to trade profitably in such a complex market environment.

U.S economic performance: Compared to the U.S economy that Aussie economy is doing relatively well and for this, we are seeing a novice bullish correction in the AUDUSD pair in the global market. Though the pair is exhibiting bullish movement in the global market according to the leading currency strategist, the U.S government is most likely to hike their interest rate in the month of June. Since FED has projected three possible rate hike in the year 2017, all the investors are very cautious while selling the green bucks in the global market. Though the green bucks are supported by the FED statement at the current market conditions investors are in fear as Mr. Trump administration is totally unpredictable.

Summary: The year 2017 has been very complex for the professional traders as Mr. Trump has created an extreme level of doubt into the investor’s mind by stating high impact statement which turns out to be false in near future. Though AUDUSD pair is exhibiting nice bullish movement in the global market the investors are in fear since an imminent hawkish rate hike by the FED will push the Aussie dollar lower in the global market. Moreover, the recent drop in the price of iron is also pushing the Aussie economy in the negative territory. Considering all the fundamental factors it’s better to stay on the sideline until the market present more lucrative trading opportunity.

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