The Market Word - Australian Dollar
Australia has been like the "California Gold Rush" back in the days of old in the US. Mining has become a huge business as foreign interest to families embark on mining varied products such as Gold, Iron Ore, Uranium, Coal and Natural Gas. Australian Prime Minister Julia Gillard was able to pass a Mining Tax through Parliament at the risk of her political career and the Chinese interest that the mining industry has attracted. She wants the Mining Tax to pay for company tax, to fund worker pension funds and use the added monies to counter the glum economic outlook. She hopes to build the nation and secure the economic standing for the generations to come. The Industrial and Commercial Bank of China has already viewed the move as detrimental to mining projects in Australia. Australia has relied upon its relationship with China and while this may be a risky move in terms of future business with the Chinese, it may advance the growth and stability in Australia. The tax should start July 1, 2012 and may generate $7.7 billion aussie in the first couple of years. It is thought that the mining should grow considerably and export trade should expand. China already has an investment in Australia, it is unlikely they would pull away, despite the resistance of the Mining Tax!
The December Australian Dollar is in buy mode on the Hourly Chart according to the Wilder's Parabolic SAR.
Sample Trade Opportunity!
Buy December Australian Dollar(6AZ11) at $.9677. If filled, sell 6AZ11 at $.9644 Stop or sell 6AZ11 at $.9945 Limit (Target). The risk on this trade is $330.00 plus fees and commissions. The profit potential on the trade is $2,680.00 less fees and commissions. The expiration is December 19th.