Source: ForexYard
The Australian Dollar weakened against all of its 16 Major counterparts due to concerns over the pace at which China’s economy will grow, reducing demand for smaller nation’s commodities.In other words, a slow down in China’s economic growth will have a negative impact on Australia’s Currency.
The Australian and New Zealand Dollars were poised for their first monthly losses this year as reports and figures from China showed that earnings dropped in the nation’s industrial companies.It is possible that the Aussie and Kiwi Dollar may experience some difficulty if news out of China continues at this negative rate.
News involving China will always have a big impact on both the Aussie and Kiwi Dollar as China is a very important trading partner for the two nations.
Many traders are anticipating China’s PMI for manufacturing which is set to be released on the 1st April 2012.
The great nation is Australia’s largest overseas market whilst China also holds the title as New Zealand’s second biggest export destination.
Despite the recent fall against its major currency rivals, both the Aussie and Kiwi Dollar are set for their second consecutive quarterly gains over the Greenback.The Aussie Dollar has added 3 percent this year whilst the Kiwi has risen 5.7 percent.
The Australian Dollar is a very profitable currency to trade due to its volatility.However, the nation is very dependent on China and therefore its important for traders to keep a close eye on significant news coming out of China as it will have a direct affect on the Aussie.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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