U mean.. US and Aussie dollar rise and fall with respect to
Euro?
I'm dun really know much abt forex.. but IMO, US is the biggest
economy in the world. When USD strengthen against one currency
(e.g. due to increase Interest Rates or improved GDP), it is most
likely to increase against most other currencies (SGD, Euro,
Aussie$)... cos many countries are exporting to US.
For eg. if US dollar increase against Euro, it means imports from
Europe will become cheaper. If Aussie$ doesn't change against the
USD, imports from Aust to US will be more expensive compared to
those from Europe.
secondly, is capital flow. for eg. if interest rates increase in
US, An investor will find it better to save his money in a US bank
as compared to Australia. So he will buy more USD, and sell more
Aussie$.
This is only a simplistic view.. i think there are a lot of other
factors which will affect movements betw USD and Aussie$.
