Forex Blog: Currency Trading News & Analysis.

August 18th 2008

Parity Party for the AUD

Is the "parity party" on or off? That is the question on the minds of currency traders following the Australian Dollar. Last week, analysts indicated that the party had been postponed, if not cancelled entirely. This week, there are signs that perhaps some of the bearishness surrounding the AUD is overblown. To be sure, the Australian economy is slowing, and the Central Bank will almost certainly lower interest rates. At the same time, some analysts believe that commodity prices have fallen too far, and will recover in time, as the long-term fundamentals that have underlied their rise still remain in place. Besides, the currency’s losing streak is already the worst since 1980, which suggests investors have gone too far. The most likely scenario is a bumpy 2008 for the currency, followed by a strong 2009. reports:

[One analyst] said a recovery in global commodity prices could give the currency a much-needed bounce over the next few months. Citigroup has also forecast that the global markets have turned "too bearish" on commodity prices.

Read More: Aussie dollar falls back to Earth

SocialTwist Tell-a-Friend
Posted by Adam Kritzer | in Australian Dollar | No Comments »

Sponsored Offers

FREE Daily Email Updates

Enter your email address:

Delivered by FeedBurner

Have Questions? Want to Share Your Review?

Be heard. Please share your reviews today!

Neighboring Posts

© 2004 - 2023 Forex Currency charts © their sources. While we aim to analyze and try to forceast the forex markets, none of what we publish should be taken as personalized investment advice. Forex exchange rates depend on many factors like monetary policy, currency inflation, and geo-political risks that may not be forseen. Forex trading & investing involves a significant risk of loss.