Analysis

Today, we will speak about 2013's best performer, the poundsterling, and two 'minor' major currencies, Aussie and Kiwi.

This is the time for restrospection and planning next year trading, plus making new year resolution. To help you, we have prepared two opinion on the topic of 2013 forex market dynamics and what we could hope for in 2014.

In an interview with NBC last night (22/12), IMF director Christine Lagarde said that United States of America has better outlook for 2014. She has good reason for this kind of optimism. Lowered unemployment, the Fed's tapering, and government budget agreement; all of them shows that USA in 2014 will do better. Naturally, better economy means better USD too. Do you think so?

Yesterday, The Fed cuts its stimulus program from 85billion dollar a month into 75billion. As soon as the announcement was made, USD rose in almost all pair, including JPY and AUD, and knocked out Asian currency. Today (20/12), Bank of Japan released its statement for the new stimulus program.

At last, the Fed announced the long-awaited tapering. Financial world was scrambling to get behind the stronger USD. Bloomberg (19/12) reported that Asian currencies, including Yen, fell after the announcement. Are you one of the traders who took profit from this event? Or are you dropped down like Asian currencies? The Asians, especially Indonesians, are questioning whether this is a signal for upcoming crisis.

AUD exchange rates continue to sink in the last one month. Not only weaken against USD, Aussie also fell to five months low against its neighbor, NZD. From forex news, we can see that AUD is not only impacted by the usual factors that influenced forex, but also China economic reports. How come China partake in AUD/USD trade?