AUD Volatility Ahead? AUD/USD Eyes Australian Jobs & China GDP
More Volatility Ahead? AUD/USD Eyes Australian Jobs & China GDP? Many financial analysts and traders are forecasting the downfall of the Australian dollar as the jobless crisis picks up speed, but just how bad could it get? How do we solve a problem like that with a high volatility emerging currency like the AUD?
Economists and traders forecast the eventual demise of the Australian dollar as a result of the employment and inflation issues as a result of the particular currency pair. There is a lot riding on this one and no one can afford to be asleep at the wheel.
There is no doubt that there will be an increase in the volatility on a daily basis during the next two weeks or so. The flow of information is being narrowed down and the flow of decisions has to be so carefully watched that any miscalculation can be costly. Of course, the problem that we have is that the currency market is so huge and it is so difficult to see what is going on, especially in a developing country like Australia.
Perhaps we will be in the middle of the jobless issues and the cost of living will have increased for the people of the particular country but it is unlikely that the effect will be directly related to the specific currency pair. It may have been inevitable anyway, but it would seem that the employment issues and the cost of living may have had a profound effect on the economy. This is a big problem for the particular currency market.
The credit crisis and its aftermath have created a huge amount of negative news on a daily basis and a lot of the time, all the noise seems to be centered around one thing, the jobless crisis. This is a huge concern because more than half of the American population has been unemployed for six months or more and many of them have become so disillusioned with their economic situation that they simply give up and move to some other country. This means that they have to find a job sooner or later.
The unemployment rate has fallen below the three million mark and many more people are finding that they have jobs and that the salaries are not at the same level. Many of these people who have had to accept unemployment benefits know that there is no possible way that they can pay off their debt by looking for a job, so they simply give up hope and move to another country where they will find work in a much better position.
There are certain job sectors that have not been affected by the recession, but there is no doubt that the general economy has hit rock bottom and as such there are a lot of people who will be looking for jobs. The difficulty is that there is only so much that you can do in this situation. You have to wait for something to happen.
As the unemployment crisis becomes more acute, people are becoming desperate, and they want to get back into the workforce as quickly as possible. This does not bode well for the Australian dollar because that currency has now started to fall and the trend may continue.
Does this mean that we are on the verge of the end of the particular currency pair? Well, there is no doubt that the currency market will continue to fluctuate around, but we should expect that there will be a slight downtrend.
If you are looking for an absolute indication as to when the currency markets are going to go into a new uptrend, I would simply suggest that you hold off on buying your currency right now. We are all waiting for some kind of information and this is probably the time that we get it.
We cannot afford to be impatient, especially when we have such a volatile market right now. Itis imperative that we act as quickly as possible and make the necessary moves before the inevitable happens.