The Australian Dollar motors to a 21 month high over the weekend
The Australian dollar moved higher over Friday and Saturday, pushing to a 21-month high against the US dollar. Once again, the move higher was driven largely by a weaker US dollar. So how does it work? Well, if the US dollar weakens and the Australian dollar remains the same, then the AUD/USD exchange rate goes higher. The opposite is true too. If the US dollar gets stronger and the Australian dollar doesn’t change, then the AUD/USD rate will fall. In this case, the US dollar has been falling for 4 straight months. This is a big change from earlier in 2020 […]
Why the Australian Dollar is getting stronger when the economy is on it’s knees
The AUD/USD exchange rate has risen 30% in 4 months. That is remarkable. 2020 has been a rocky ride for most currencies and markets and the Australian dollar is no different. Here are a few reasons why the Australian dollar has gotten so strong, so quickly. Overdone Part of the reason the Australian dollar bounced back so hard is that in March, it may have fallen too far. That is, during the first stages of the COVID-19 pandemic, markets sold off the AUD too hard, believing things were worse that they ended up being. On the other side of this, […]
AUD USD Rises Above 72 cents for the first time in 17 months
For the first time since February 2019, the Australian dollar has risen above 72 cents. It caps off a remarkable period for the Aussie dollar which hit 0.5740 in late March. The massive rally higher has been driven by: An increase in commodity prices A weaker US dollar Increased risk sentiment The forecast for the AUD/USD remains uncertain heading into the back half of 2020. While many agree that the US dollar could weaken further, commodity prices are less likely to continue higher. There is also the possibility of increased volatility which historically, has had a negative impact on the […]
The Aussie dollar rockets to a 15-month high above 71 cents
Yesterday, the Australian dollar pushed higher to hit a 15-month high. A softer US dollar helped propel the AUD/USD rate to 0.7181 before easing back about 0.5% this morning. The Aussie dollar managed to strengthen despite a rise in coronavirus cases both locally and in the US. The extension of the JobKeeper and JobSeeker programs by the federal government set a positive tone for the local currency which also move higher agains many other major currencies. While a higher AUD benefits Australians heading overseas, most locals can’t take advantage of it with international travel bans likely to remain in place […]
The Australian Dollar hits 70 cents for just the third time in 2020
After weeks of flirting just short around 69 cents, the AUD/USD exchange has risen back above 70 cents for only the third time in of 2020. The Australian dollar traded between 0.6850 and 0.6950 for much of June and the first half of July before breaking higher. A mixture of higher commodity prices, particularly iron ore and a weaker US dollar was enough to finally crack through 70 cents. Against the other major currencies, the Aussie dollar has barely moved. In the last month, it has been largely unchanged against the British Pound, Euro, Japanese Yen and New Zealand Dollar.
The Australian dollar hits 70 cents for the first time since the start of 2020
The Australian dollar has risen back above 70 cents for only the second time since the first week of 2020. It has now recovered more than 20% since bottoming out in March when it fell below 58 cents. The amazing surge of the Australian dollar largely reflects a changing mood across global markets that not only is the worst of the COVID-19 pandemic behind us, but also that the impact will be less severe than previously forecast. The AUD has performed strongly, not just against the US dollar. It has risen sharply against most major currencies. The AUD to EUR exchange […]
