DELSU MTL COMMUNITY

I have another question... why is it that when US reduces interest rate investors seems to move over investing in precious metals like gold , silver and btc instead of investing more on AUD that has a higher interest rate cut .

that's because lower interest rates in USD means lower returns for owning USD-denominated assets

In simpler terms, if I own a US chair for instance and USD reduces interest rates, that means that I will be paid a lower fee for owning that chair and this will discourage me from keeping that chair because there is a chance that the fee will keep on getting lower and lower

Can you explain the strength of a currency over another

Like let's say USDCAD now

If USD is stronger what will happen to the pair

And if CAD is stronger what will happen to the pair

Things like that

Okay

In a currency pair like USDCAD for instance, if USD gains more strength than CAD, then the currency pair will appreciate and this will reflect on the chart as more bullish(green) candlesticks in an upward direction

However, if CAD gains more strength than USD, then the pair will depreciate

This will show on the chart as more bearish(red) candlesticks in a downward direction

A lot of reasons, one of the major reason is that most of the world's currency reserves is in USD.

Not just that, USD is the most used currency in the world

And like I said yesterday, one economic indicator alone doesn't determine the overall value of a currency or currency pair

In simpler terms, if I own a US chair for instance and USD reduces interest rates, that means that I will be paid a lower fee for owning that chair and this will discourage me from keeping that chair because there is a chance that the fee will keep on getting lower and lower

Okay ... that means in as much as AUD has higher interest rate more than USD. USD still get more relevant and dominance more than AUD.

Not really,a rise in inerest rates for AUD might lead to a more bullish sentiment in AUDUSD for this might just be for a short time because interest rates are always changing

Is that why most invest are now investing into US stock these days because they seems to believe that US will be increase interest rate.

Okay

In a currency pair like USDCAD for instance, if USD gains more strength than CAD, then the currency pair will appreciate and this will reflect on the chart as more bullish(green) candlesticks in an upward direction

It isn't fixed

I'm liking this discussion 🙂

JUST IN: 🇺🇸 Federal Reserve is no longer projected to raise interest rates next month.

@WatcherGuru

JUST IN: 🇺🇸 Federal Reserve is no longer projected to raise interest rates next month.

@WatcherGuru