Today I was interviewed again by Carson Scott on Trading Day, Sky Business channel on the Australian market, specifically the ASX200 index, the Australian dollar (AUD/USD), and RBA and Fed plans. Specifically I was asked about the recent decline in the ASX200 index and its current significant levels.
We talked about the influence that China is currently having on global markets including Australia’s and what that has meant for the Australian dollar. Also whether or not the China regulators and central bank have handled the situation well or not.
We also talked about the outlook for the AUD/USD throughout 2016. I suggested that most believe the A$ has more to fall this year, possibly slowly. The 70 US cents level is presently providing rock solid support and even propped it up overnight when it dropped below for a short time.
The Federal Reserve and RBA are on opposite paths this year. The Fed are looking to raise and speculation will go on this year about whether the RBA will cut rates at any stage. There is certainly no talk about them raising rates therefore the bias is for the A$ to fall over time as that interest rate difference narrows.
With the ASX we talked about how the current key level is 5000 and is a very significant psychological level. We also talked about gold.