Currency Trading Australian Dollar
Why is the Australian dollar was hammered so much?
Of all the Western economies, the Australian economy is strong at this time. In the last two days of trading of shares, our shares fell only 1.6% daily, while the world was falling free. Our government is in surplus, but the big expense to keep the economy is blowing away. The projected growth for next year is 2.3%. Thanks to a regulatory provision, our banks are on the mainland, with the four major holding a AA rating (only 13 banks throughout the world retain this note.) Our interest rates are still healthy 6% and the government has guaranteed deposits in banks. However, our currency has lost 40% of its value over the last month. It's even worse as Iceland, which is on the brink of disaster, and that Zimbabwe was worse. Indeed, the Australian dollar was overvalued a little at first, but now is more undervalued than it was overvalued. So why is it so hard hit?
Its market value is not its real value, but its perceived value. His being beaten because the world perceives its value to be lower than it was.
Forex Training Videos — Australian Dollar/Japanese Yen Pt. 2
