Finance Update with Christina Morrison

Goldrush Magazine Finance 4 Minute Read The 2025 financial predictions are unfolding as the RBA sets out its conservative rates and the Australian Dollar indicates a slow but steady resurgence. Our Editor in Chief, Christina M. Morrison, lifts the lid on what you need to know to confidently invest in 2025.

Aussie Dollar shows a slow but steady sign of recovery from shocking decline

• AUD/USD recovers to 0.61888702 as of today, Tuesday 14th January, up 0.16%.

• US Dollar looks solid, after favourable report from NFP.

• RBA’s conservative reports are keeping investors on alert for updates.
  

  The good news for the Australian Dollar is that today's exchange rates indicate recovery may (albeit slowly) be underway.  Not since April, 2020 had the Australian Dollar hit such concerningly low rates of 0.6130, however, since Monday, 13th January, 2025, the shift towards economic resurgence seems in place.  While the small but significant rise is indeed favourable, the Australian Dollar is yet beleaguered by worrying employment figures from the United States.  This is alongside highly conservative reports from the RBA as to the current financial outlook.
  

  To glean a clearer picture of the current trends, I spoke with hedge fund manager, John Myers, in Double Bay, Sydney.
  

  "What we're seeing since the US Bureau of Labor Statistics reported 256,000 new jobs in December 2024, is a shift in global figures," Myers notes. "This is interesting because it's well ahead of the forecast of 160,000," he adds, stating also that, "Stock market advisors and global traders are now anticipating that the Federal Reserve will reduce rates only once during 2025.  This will give the US Dollar more power and, meanwhile, with the US Dollar Index (DXY) having reached 109.96 this week (its best since November 2022,) the positive impact on global markets is set to be steady this year."
  

  At the same time, the RBA (Reserve Bank of Australia) maintains a conservative appraisal of the economic climate.  

  
  

  "The RBA is holding several cards closely to its chest and not taking any chances until current concerns about specific aspects of the global financial climate potentially clear," advises Myers. "The big players include, of course, China, where their economic slowdown has prompted the RBA to remain highly cautious in its decision-making as the new year opens up."

  
  

  Of note today is also that the RSI (Relative Strength Index) is at 32, indicating a slight but noteworthy increase.
  

  "Banks are advised to move cautiously," adds Myers.  "The figures are showing that the currently hefty USD and predicted RBA rate-cuts combine to render that while the market is showing promising shifts, any major decisions should be placed on hold until the next month, so that trends can be analysed judiciously."  Myers advises.  "At the same time, I'm quietly confident that 2025 will have notably positive dividends overall as the global markets improve and the Aussie Dollar steps back into the financial spotlight." Christina M. Morrison