Why Aussie Dollar will Continue Rising? Aussie Dollar Analysist. The Australian Dollar continues to climb as commodities across the board soar on shrinking supply as a result of the Russian invasion of the Ukraine and the subsequent sanctions imposed by the West.
Industrial metals, precious metals, soft commodities and any energy product not flowing from Russia or Ukraine are being hoovered up by traders. Markets are trembling as the ramifications of the conflict remain uncertain. Also the sanctions will stay for long time there.
Exporters may elect to enhance their production capacity in order to benefit from higher export prices as commodity prices rise. In most cases, this investment has been financed by money (capital) that has flowed into Australia from outside the country. Which has bolstered the value of the Australian dollar. Why Aussie Dollar will Continue Rising? in picture:
We are focusing on this three pairs for Aussie Dollar Analysist.
AUDJPY probably the best one to keep continuing long on AUD with target around 103. While JPY will remain weak as BoJ intended to make it so. If the war start escalating, there’s probably a pull back, but do not forget that Aussie will keep get supported as there will be another surge in commodity prices. On technical analysis, we can see clear break after invert head and shoulder pattern. after consolidating around vwap.
Break the month flag technically and it is reasonable to reach 1.15555 target as the next strong support. As Euro zone & U.K. is the most impacted amid the war and all the sanctions. This will give strong reason to stay short for EURAUD and GBPAUD.
Strong break on triangle for GBPAUD month chart. Fundamentally the same reason for shorting EURAUD as Euro zone & U.K. is the most impacted amid the war and all the sanctions. Strong Australian dollar will still be in favor.