Good day forex traders.
Have you been trading the AUD/USD ? This is a popular currency pair as many traders seek to take advantage of the interest rate differential and earn from this carry trade.
In previous articles, we examined the fundamental aspects of the Australian economy and noted the growth potential of this commodity driven economy.
Looking at the AUD/USD hourly chart above, we observe that the currency pair is ranging rather tightly. This is probably due to the negative sentiments of the Euro Zone budget deficit crisis weighting down.
With China recently taking measures to ease reserve requirements of banks so as to stimulate it’s economy, the general signal given is that the crisis is taking it’s toil on the rest of the world. Many people are speculating that the Reserve Bank of Australia RBA may cut interest rates tomorrow in a similar move to ease tightening conditions and hence apprehension is high and reflected in the ranging AUD/USD.
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