Australian Dollar Enjoys Increase in Light of China’s Burgeoning Industries
The Australian Dollar enjoyed an increase overnight as manufacturing industries in China acquired even more of Australia’s surplus requirements.
The PMI figure of 50.4 – welcomely higher than the optimum 50.0 required for growth – indicates that the Australian Dollar’s growth looks set to continue, at least for the time being as China turns to Australasia as a realistic solution for its exponential construction requirements.
Online Forex traders should take heed, however. Current forecasts may hint at a continued positive trend, but as yet it is too early to glean a long-term increase.
The upward trend for the Australian dollar comes at a time during which mining exporters in Australia have increasingly relied on China as the main buyer of its mining exports, which seeks a less costly alternative in light of current European headwinds.
China’s reliance on importing materials to fuel its growing populations comes at a time when the country is constructing well over hundreds of high-rise office blocks each year. Indeed, many construction companies in the Asian country boast the ability to construct a 15-storey building in just two weeks. The country’s demand for affordable mining exports is therefore incredibly high.
The Forex trading market has announced a probability of 61% that RBA rates will drop by 25 points during the first week of December. Online traders take heed: expectations of deteriorating conditions are therefore high, which may prompt policy officials to opt for lower interest rates and subsequently waver the Aussie dollar’s allure.
Forex traders are reminded that such a positive trend may all too quickly revert to a dip before making any rash trading decisions.
