AUD/USD Outlook: RSI Flirts With Overbought Zone Ahead of Australia CPI; What’s Going on in the Markets? An Analysis by Mark Thomason
If you have read any Forex Newsletters, or watched any Forex Press Releases, or read any Forex Investors Letter, then you will know that over the past few weeks there has been a lot of interest in Australia’s Consumer Price Index (CPI). In this article, I’ll explain what it is, and how it affects Australia’s Forex Markets.
The Australian Consumer Price Index (CPI) is an indicator of economic activity in the economy. It is designed to give a more realistic picture of what the index would have looked like without any economic influence at all. It also makes it easier for the market to forecast the future behaviour of the economy based on past trends.
As the Australian economy gets stronger, we are likely to see a rise in the AUD/USD, as more countries become more open to trade with Australia. The higher level of trading activity, which can result from more countries buying Australian exports, and more people buying homes and cars from Australia. This will also help the AUD/USD rise, which will help the economy as a whole. It’s likely to continue doing this for a while, but as the Australian economy continues to grow, the AUD/USD is unlikely to fall again until the end of this year.
However, the AUD/USD Outlook does make one thing clear, that if the US Federal Reserve raises rates, then that will also affect the AUD/USD. If the Federal Reserve lowers interest rates, the AUD/USD will drop. The recent interest rate move by the Federal Reserve in the USA is likely to cause the AUD/USD to move higher, but if it does not, the AUD/USD is unlikely to fall either.
There are a number of reasons why the AUD/USD is expected to rise. One of the main reasons is because Australia is having its own economic problems and the Australian dollar has been losing some of its strength, but has been holding up pretty well against other major currencies for the last few months, and this means that it has kept it value against the AUD/USD.
However, other reasons that are also being discussed are that Australia is experiencing a recession, and the AUD/USD could start to lose its strength as it starts to lose ground against other major currencies. If the AUD/USD falls, it could cause some significant damage to the economy, especially in the area of finance.
So when the AUD/USD Outlook says that the AUD/USD is likely to rise, it means that the economy is likely to gain strength. But when the AUD/USD falls, it could cause serious financial problems for the economy in that the weaker currency could cause many problems for businesses and consumers and may even cause the AUD/USD to fall in value against the Euro and other major economies.
The AUD/USD Outlook also says that the US Federal Reserve is unlikely to raise interest rates, which will make it difficult for the AUD/USD to move higher. So if the AUD/USD falls, the AUD/USD can become undervalued, causing problems for Australian consumers and businesses and possibly making the economy worse than it would have been otherwise. And this means that if the AUD/USD rises too far, the AUD/USD could suffer major financial problems and even fall into the lower end of the trading range, causing severe financial problems.
However, if the AUD/USD falls, the AUD/USD will become undervalued due to lower expectations from the analysts and market makers about the AUD/USD, and this should also cause problems for Australian consumers and businesses and should cause the AUD/USD to hold steady or even fall. and this would mean that AUD/USD is more undervalued than other major currencies in the economy.
And the only way to tell whether the AUD/USD is undervalued or not is to check out the AUD/USD Outlook and see what it says. But the best way to get a good idea of whether the AUD/USD is undervalued is to look at the current price of the AUD/USD against the other major currencies and look at the chart. If the AUD/USD is overvalued, the chart will show that there is too much support, or if there is too much resistance there will be too much support.
If the market maker’s outlook is bullish on the AUD/USD, then the market makers will be trying to push the price down to help prop the market and you can be sure that the AUD/USD Outlook will give you an indication of whether it is undervalued or not. if the market maker says that the AUD/USD will hit overbought territory then you are probably looking at the AUD/USD Outlook being too bullish, so don’t buy any shares until it reverses and it ends up being too undervalued.