AUSTRALIAN DOLLAR HAS POTENTIAL TO FALL DRASTICALLY IF CHINA FORBID IRON ORE IMPORT

16.12.2020
Technical Analysis
1th Dec. - The sharp rise in the Australian Dollar price in recent months has been contributed by iron ore export activities which have increased significantly this year.China is the largest importer of iron ore and contributes to the overflow of economic revenue to Australia. The Australian Dollar is in high demand because trading is done in AUD currency while increasing the AUD price level.Last January, the AUD to USD traded at 0.5500, rising to 0.7590 recently. No significant retracement has occurred in the last 12 months.We expect a retracement phase on the AUD / USD pair. Prices are currently on the resistant line and will most likely drop slightly. We expect a range of price movements to occur at around 0.7500 - 0.7000 in the next few months.