Finance & Fury Podcast

Welcome to Finance and Fury. Last Monday – talked about exchange rate basics Summary - There are a number of factors that go into analysis of the fundamental health of economies and the implications for currency movements – and in turn these can affect the exchange rates – Went through indicators that show the flows and trends of supply and demand - like the balance of payments (capital and current accounts) and the level of foreign reserves a country has – including economic indicators like inflation, interest rates, GPD – all go towards affecting the exchange rate movements – but these are only at a cross currency level when looking at say the AUD to USD Today – Look at some of the reasons behind movements of AUD to USD Major things to look at: Central bank policy – interest rates, inflation expectations – influence trading behaviours Trading positions – what professionals are betting on The trade markets – current account and capital accounts – historical data No way to accurately predict the movements