Australian Dollar Forecast: Key AUD/USD Levels to Watch For the Week Ahead

It’s not easy to be an Australian currency trader without having a solid understanding of what is happening in the Australian Dollar Forecast. When things are going well in Australian dollar Forecast, you should take it as a positive sign and make a profit. When things aren’t going so well, you should consider trading with the knowledge that the country could be headed for trouble.

Iran is on the brink of war with Iraq and if the oil sanctions are lifted, then the price of Iranian oil will skyrocket, causing damage to the United States and South Korea, one of the biggest customers for Iranian oil. If North Korea keeps its missiles up high, then the whole world is in danger.

Oil could stay low and stay on the shelf, but then that will create the same kind of problems in the South Pacific as it did in the Persian Gulf; the sunken ships, the missing oil tankers, the giant oil platforms. Again, the United States will have to get involved in the South Pacific; that’s how deep the trouble goes.

The US has the capacity to protect its oil tankers, but it seems unlikely that President Bush will have the political capital necessary to do that. If he has no interest in defending our tankers, then the prices for those tankers will go sky high because everyone else in the region will be following the US lead and going out of business.

Sudan is in turmoil; a civil war is about to break out in Chad. That can only mean one thing; that it will lead to a partition of Africa, possibly a war between Nigeria and South Africa. It’s not too far away now.

Yes, oil has been the lifeblood of the United States, South Korea and Japan, but we must look beyond the economic disaster in the Persian Gulf and the growing chaos in the Levantine countries. Those are big, far away countries with plenty of oil. We only have one port in Australia, just north of Darwin, that has enough crude oil storage space to last a year or longer.

This is the reason the Australian Dollar Forecast cannot be ignored anymore. We are at war in the Middle East, and that’s what’s making the oil prices spike now.

The only reason why the United States can feel secure now is because the Islamic rebels in the Middle East have failed to get their people to rise up and overthrow the dictator in Iraq. He is fighting back and Iran is giving him a bloody nose. If the war in the Middle East is ever going to end, then Iran will be the one to end it.

Israel is worried about a renewed conflict in the area, but even if the Arab countries were to offer peace, we have no idea what they would be offering. Sure, they might say “give us the oil reserves, in exchange for leaving you alone.” Of course, that’s not what they would offer.

You see, the power vacuum created by the downfall of the dictator in Iraq may be good for people in the South Pacific, but the price of crude oil will be high in the North Pacific and South Pacific. Again, Australia, with one port, needs to have reserves that can withstand what will come after the spill. Once again, the Australian Dollar Forecast is important. Iran has already promised to flood the Strait of Hormuz, which is part of the Persian Gulf. In a few years, we might find out that they haven’t been bluffing. There is nothing that the US has yet found, or any other nation has found, that will solve their oil problems.