Forex Australia traders are taking two positions: selling AUD for safe havens and buying AUD on good election news. The AUD has increased steadily in value in the last few weeks, especially against the USD. Investors are still seeking safe havens, but they are also seeking many of the major currencies that are not USD. Plenty of it has to do with the trouble in Syria and the response the USA has had regarding the August chemical weapon crimes. A new announcement had some investors a little worried at the beginning of the third week (September 2013).
Forex Australia Reacts to Israel Announcement
An ambassador of Israel spoke with the USA stating they want to see Syrian president al-Assad removed from office. This was not the publically stated opinion before; however, the ambassador apparently said they wanted the president out of Syria even before the most recent troubles began. Israel wants the president’s defeat because of his link to Iran and al-Qaeda. The announcement was made in the Jerusalem Post regarding the civil war that has run rampant in Syria. Israel and Syria are not considered friendly countries and it has seemingly become worse in recent months. The announcement further stated Israel prefers enemies not backed by Iran versus those that are. This news release changed the view for some in forex Australia. It again called up the safe haven currencies versus some of the major currencies.
The information is also not helping relations with Iran. Israel last year was ready to invade Iran to eradicate any nuclear weapons they might be building. Relations ended with Israel backing off and creating a semi peaceful relationship; however, Syria has sparked it all again. Israel is certainly not afraid to act; it is just a matter of how they will act to try and get al-Assad out. Israel is on good terms with the USA, yet if they act it might even threaten USA relations. It certainly creates worry for those trading in forex Australia although to a smaller degree.
Main Concerns in Forex Australia from Middle East
Israel is unsure if Iran has a nuclear arsenal although it is highly suspected. Israel is certainly not afraid to make noise that they will take action; however, poking Iran into action is not something most countries want. If Iran does have an arsenal it would mean Russian backed Syria and Iran could create quite a mess. This is the biggest worry for forex Australia traders. An all out world war is not something most want to see, but unrest is also not going away.
Wide speculation is that China is just waiting for things to implode. There is also worry if things get worse North Korea will start making waves again, siding with China and that China’s main aim is to once again become the most powerful country with help from neighbours if need be. Whether any of this speculation is true, investors are keeping a close eye on the market ready to run from forex Australia AUD into safe havens like gold, oil, the CHF and Yen.
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