Singaporeans love travelling to Australia for work, studying and enjoying a vacation there.
Should Aussie dollar continue to strengthen, Singaporeans working overseas will fetch better foreign exchange rate when converting their Australian Dollar salary into Sing Dollar, Singaporeans going to Australia to study may find themselves paying a lot more for their degree.
Australia is a resource based economy that derived most of its revenue from. Australia domestic economy performance is highly influence by China growth story, where China's demand hungry for Australia resources. if China import less resource from Australia not only will it impact its GDP growth as well as its foreign exchange rate. Theoretically, the strengthening of the currency will see foreign institutional funds inflow into its economy seeking investment yields.
Base on Technical Analysis (TA),
Aussie dollar is expected to further appreciating against USD, also known as commodities currencies.
Weekly chart shows 2 rounding bottom chart formation (1 small in brown color line & 1 Large in orange color line).
Monthly Chart shows falling wedge chart pattern in black color line, 1 small rounding bottom in yellow color line and 1 large rounding bottom is brown color line.
1st target range is 0.78 to 0.80 currently consolidating.
2nd target range is 0.86 to 0.88
3rd target range is 0.94 to 0.95
