AUD/USD bulls taking charge, but…

By FXStreet FXStreet (Guatemala) – AUD/USD has been slightly offered in early Asia, but has since stabilized from a low of 0.7153. The NAB business confidence survey was generally positive, offering some support to the Aussie and the price reached a fresh high of 0.7191.

Australia headed for a recession?

There have been some conflicting outlooks for the Australian economy, but the RBA have started to turn less bullish and more vigilant on external factors. However, what about internally?

The nation has not been in a recession for nearly 25 years, but according to Australian Bureau of Statistics, there was a surprisingly sharp contraction in third-quarter business investment and shows that the nation has fallen into a pattern of weak aggregate demand and excessive corporate savings that are not being reinvested in additional capacity or productivity enhancement. While that is a plus for the shareholder in buyback arrangements and received in dividends, it does not bode well for growth while the country desperately needs to shift out of mining into other sectors.

Then, back to externally, the IMF said that global exports are the lowest since 1958 and with China potentially on the verge of cutting even less demand …read more

Source:: FX Street