Financial Market Review: AUD/USD and AUD/JPY Analysis

FINANCIAL MRKET REVIEW 1
Financial market review
By (Name)
Course
Instructor’s Name
Institutional Affiliation
The City and State
The Date

FINANCIAL MRKET REVIEW 2
AUD/USD and AUD/JPY
The paper discusses the financial market review of the AUD/USD and AUD/JPY in the
world market and within the domestic market. The paper analyzes how exchange rates vary
under different economic factors. It also determines the indicators what affect the AUD/USD and
AUD/JPY in the economy in relation to the exchange rate. Additionally, the paper finds out
which indicator causes the currency appreciation and depreciation. It concludes with the analysis
of the forecasts for these exchange rates in the near future.
Analysis of AUD/USD and AUD/JPY
Different scholars provide different technical analysis of the AUD/USD and AUD/JPY in
terms of economics either on a daily basis or annually with different forecasts. Both positive and
negative results from different analysists have been given out concerning how AUD/USD and
AUD/JPY affect each other in the next three months. For example, the AUD/USD provides the
negative trades in today’s opening which falls under the continuous negative pressures that come
from the EMA50 (Tejvan, 2010).The effect remains valid in the next three months and will be
conditioned by the stability of the prices in the economy.
The trading range is expected to increase from the original value of 0.71 to around 0.72
hence leading to appreciation of the currency. But also, other scholars give positive analysis of
the AUD/USD and AUD/JPY on the foreign exchange rates whichwill lead to the appreciation of
the currency say in the next three -six months (Tejvan, 2010).

FINANCIAL MRKET REVIEW 3
The AUD/USD pair resumes its negative trading rates after the results showing 0.720 of
the barriers with an aim to reduce this bearish rate in the next three months. All this depends on
how trading inside the bearish is organized to lower the price of the commodities which finally
leads to depreciation of the currency. Most scholars turned up with positive trades the pair of
AUD/USD but emphasized its decline in the next period of months due to pressure by the
EMA50. The scenario is true because the EMA50 supports trades within the channel of bearish
(Flassbeck, 2018). Also, the analysis of the results found out that AUD/USD and AUD/JPY
show a sideways trading rate in the next three months and this is because it settles below the
pressure of EMA50 (Flassbeck, 2018).
Much of the changes in these foreign exchange rates are expected to occur in the next
month following the current trades in their respective countries (Citibank, 2018). For example,
the president of china who is Xi Jinping in his speech at Boao Forum anticipated an increase in
the Australian Dollar in the next three months (Citibank, 2018). With improved market
conditions for both foreign and domestic firms, prices of exports are expected to increase and
hence domestic currency appreciation (Citibank, 2018). Similarly, low import tariffs on cars and
protection of domestic goods will also lead to currency appreciation in the next three months.
Additionally, these foreign exchange rates will also push both Japan and China forward into an
economic globalization. It also analyzed that, the AUD is expected to be above the USD in the
next three months since it is very sensitive to changes in the foreign exchange rates (Citibank,
2018).

FINANCIAL MRKET REVIEW 4
Analysis of AUD/USD
The AUD/USD will attempt to break the trending line in the next three to six months
from its original point (AUD Outlook, 2018). With the break up of the trading line, foreign
exchange rate would be attempted to raise the trade at 23.60% with the spikes of 0.776. The
United State economy will not be affected with the break up since its relative interest rates would
remain the same after the trend line. However, with the Australian economy, relative inflation
rates are seen to begin raising until the original point is restored. It will also be followed by the
falling test of the wedge and 200.0MA at a rate of 0.78100 (Jingtao e t al 2010). Similarly, in
both countries, relative growth rates are seen to be increasing since both nations aim to reduce
commodity prices and protect domestic firms. Finally, there is a currency appreciation in both
nations due to high interest rates which leads to high demandfor their domestic currency by the
investors (AUD Outlook, 2018). Nevertheless, support will be needed to gain more from the
foreign exchange up-to the range of 0.765 with the next three months the trend support will be
below 0.762