Copper Rally and the Australia Economy

14 lug 2016

With Copper breaking out to the upside, I must ask, who produces copper the most that is a floating currency? By George, you got it! It is Australia, one of the leading producers of copper. And as copper continues to rally, this shall bid well for the Australian economy, and hence, its currency. It is currently transitioning into an early expansionary phase of its business cycle. There are signs of frailty still there. Also, Brexit may shook the markets.

I expect the Australia economy to further its growth and raise rates in 2017 after ceases to lower rates and giving us a hint that we are shifting into a new phase. If a downturn comes again the central bank says that it is ready. And, I will be ready.

Now, if gold begins to rally again, and I believe it will in the coming days or weeks, then this will exacerbate the move in the Australia currency up even further. I will continue to look for signs of the Australian economy growing.