Governor Stephens and the Reserve Bank of Australia will release the Monetary Policy Meeting Minutes tonight at 9:30pm EST.
Recently, due to Australia’s mining sector dilemma and a slower Chinese economy the AUD has been weak. Today against the Dollar we saw it quite exponentially.
QE2 in 2010 was much nicer to the AUD than QE3 is and the technicals, in my opinion, are looking great for an AUD/USD short.
While the recent Chinese and mining issues play a role in the current state of the AUD. There is one factor that could shake the Forex market, if it comes into play. That factor is the AUD interest rates. Interest rates have not been down to 3.00% since the second half of 2009. They have been a steady 3.50% for months now and a lowering of interest rates would no-doubt bring volatility to the markets.
Therefore, investors and economists a like across the world have the ears open for any hints concerning interest rates.
Nathan also gives his thoughts about the AUD/USD in today’s daily analysis video here.
Winner’s Edge Trading, as seen on: