Mining tax approved today, this should increase earnings and tax cuts to small business and lower profits for mining companies which is the major push of the aud value.. Good news for balancing the economy more.. If mining stays the same then expect little to no change to aud value, however if they cut down mining which is expected in Australia and which would be good, then expect the AUD to drop to a more real value..
The main reason i am negative on the mining debate is too much of mining profits is going to other countries at the expense of our beautiful landscape. By getting some money out of this cheap resource grab it allows Australia to benefit from previous exploits rather than exploit Australia based on sending profits overseas..
Image Source – Horjaraul from Pixabay
AUD Technicals 20th of March and Forecast for AUD vs USD
By technicals – if aud breaks 1.0650 expect more ups to 1.0750.. If however it breaks below 1.0550 ( breaking daily moving average area ) then expect it to return to 1.05 and 1.04 area again..
My view is bearish on AUD..
AUD is currently at 1.0566 and losing indice value, many taking profits from long positions.. I would expect and feel that the AUD will once again drop to below 1.055 area again over the next coming days..