AUD/USD Forex Trading Strategies March 2016 - Eyeing GDP

While many forex pairs have been dancing straight forward with no specific direction, Mr. Aussie might be on a new adventure of his own and we may need to revise our AUDUSD forex trading strategies March 2016.

Since we are expecting hot market moving events from both Australia and the US this week, it only makes sense that we conduct an Invest Diva Diamond analysis on this pair. What is expected from AUD/USD on the forex dance floor?

AUDUSD Forex Trading Strategies March 2016 | Mr. Aussie and Ms. USA Dancing on the Forex Dance Floor[/caption]

1- Australia’s Economic Outlook

Is it about time to see the glass half full rather than half empty when it comes to Australia’s economics outlook? Governor Glenn Stevens and a bunch of analysts at Goldman Sachs certainly think so. Here are the main areas in focus to come up with best AUD/USD forex trading strategies March 2016:

Reserve Bank of Australia held rates at 2.0 percent in March: Our mates over in the land down under decided to keep interest rates to a record low of 2.00% for the 10th month in a row. Details also reveal that the central bankers were feeling a bit confident over the economy’s growth and inflation prospects.

Growth section could be moderately slower in 2016 comparing to last year: While several advanced economies have recorded improved growth over the past year, conditions have become more difficult for a number of emerging market economies. China’s growth rate has continued to moderate.Commodity prices have declined very substantially over the past couple of years. This partly reflects slower growth in demand but also, in some key instances, large increases in supply. The decline in Australia’s terms of trade has continued. From the commodity side of things, we can expect the bearish sentiment to continue.

Expectations of weaker growth is already priced in: After the massive dive of Mr. Aussie from March 2013 all the way through July 2015, it seems as if no bad news is effecting him as much and he has been continuing to range versus most major counterparts. That could be because super investors and forex traders have already priced in the weak economies of both China and Australia. Therefore, moderate declines are not enough to create a brand new bearish momentum.