Was
2013 a hard year for the Australian dollar, which has between 15 to 20
percent of its value against the main currencies, and AGP were the only
currency that enables Australian superiority it is Japanese yen. The
slow growth rate and cut interest rates by 50 basis points and talk of
currency intervention are reasons pushed the Australian dollar to fall
to its lowest level in three years against the US dollar and the euro,
its lowest level in four years against the Chinese Yuan and the British
pound. In the long term, the weak currency is
good news for Australia, but for the State loves its people shop online
for goods from outside the country, the less purchasing power as this to
make Australians feel poverty. Having a weak
currency is vital to recovery for the export-dependent economies, with
expectations of slowing growth in 2014, says Australian Bank Governor
Glenn Stevens said he wanted to see the Australian dollar around 85
cents or below current levels by 4.5%. There are a
number of economic factors is expected to lead the Australian dollar
down next year and therefore do not believe that there will be a
significant decrease of the US dollar/Australian dollar below 85 cents.
One
of the main reasons that made the performance of Australian dollar weak
as seen next year is that the Australian currency lost property
high-risk currencies. Their relationship collapsed entirely in stocks, where the currency fell while stocks at their highest during several years. Traditionally
brings us dollar simultaneously with arrows to the strength of the
global economy are positive for the export-dependent economies such as
Australia. But in 2013, the Australian dollar
failed to benefit from global economic recovery because it has supported
very heavily on China. The country has benefited
greatly from the investment in the mining sector over the past decade,
slowing investment rates, Australian Bank was forced to cut interest
rates, thereby recouping any increase in Chinese demand. Under
forecasts of slowing Chinese economy in the coming year and prices to
the detriment of high dollar, it may be difficult to restore his status
as Australian dollar coin with high risks in the first half of the year
2014.
But
in the second half of the year, we expect that the relationship between
the Australian dollar and stock when the Australian Bank to waive its
tendency to ease monetary policy. Investors are concerned at this time that the Australian bank could cut interest rates again in 2014. The
Australian Bank has cut its forecast for gross domestic product in 2014
in December, said this month that they did not feel comfortable height.
Stevens has spoken about the possibility of
intervention, but the only way that could lead to a weak currency is the
easier monetary policy. Investors are divided on
whether the Bank will ease monetary policy, the Australian again next
year or not, and even those doubts fade, the Australian dollar remains
weak. The failure of reduced purchases of assets
of the Federal Bank in the payment currency is down and the economy
continued to grow below trend due to high unemployment and weak demand,
the Australian Bank called spark lower Australian dollar. However,
the probability is that the Australian Bank most likely may decide to
cut interest rates once more, even if they have the inclination to
impartiality would limit the low Australian dollar. This
corresponds with the price that we have seen in the Australian
dollar/US dollar on several occasions, and is high after raising the
interest rate change. Here is one of the reasons why we expect low limited Australian dollar/US dollar next year for the Australian dollar/US dollar. The
weak currency will finally support enough for the export sector of the
economy, even if the Chinese economy slows, the demand for iron ore
would remain constant.
