**Rising Prospects in AUD/USD and AUD/NZD Forex Trades**
In the world of Forex trading, a riveting development is making waves – the AUD/USD and AUD/NZD Forex trades. This piece aims to delve deep into the movement of these two currency pairs and provide insightful analysis to help traders make informed decisions.
Beginning with the AUD/USD, it’s essential to note that this pair has embarked on an upward direction, making a new high that surpasses the 0.7800 threshold. This level has not been attained in more than two years, making this an extraordinary feat.
The leap in its value can be traced back to the US Federal Reserve’s decisions regarding the national interest rates. Keeping the rates close to zero has caused the US dollar to weaken against its Australian counterpart, leading to an increase in the value of the latter.
The Australian dollar, on the other hand, has been gaining unprecedented strength due to factors like higher commodity prices, especially Copper and Iron ore, two of the country’s major export products. The prices of these commodities have vastly affected the value of the AUD, thereby positively influencing the AUD/USD pair.
Taking a technical analysis perspective, the AUD/USD pair’s uptrend seems poised to continue to rise in the near future, charting a great pathway for investors who wish to capitalize on this favourable movement.
On the flip side is the AUD/NZD pair— a dynamic duo with their unique story. In their case, the pair has been experiencing a downward pull, landing below 1.0800. This downward trend significantly deviates from the AUD/USD’s upward mobility.
The cause of the divergence between these pair’s performances stems mainly from the economic and trading conditions between Australia and New Zealand. The decrease in the exchange rate of this pair shows a stronger New Zealand Dollar against the Australian Dollar which may be triggered by different economic factors such as strength in New Zealand’s housing market and dairy prices.
In applying a technical analysis viewpoint, the value of the AUD/NZD is expected to keep downward mobility for some time, offering an exciting opportunity for traders who prefer to engage in short selling.
The world of Forex trading is indeed a kaleidoscope of movements, influenced by a melange of factors. From the Federal Reserve decisions to the strength of commodity prices and economic disparities, each of these elements plays a part in shaping the values of AUD/USD and AUD/NZD respectively.
Therefore, traders are urged to keep a keen eye on these movements and the factors fueling them, as these will directly impact their trading decisions and prospective earnings. With careful assessment and thoughtful analysis, traders can capitalise on these trends and find potential profitability irrespective of the pair’s upward or downward movement.
