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 rate has also risen 20% and now sits roughly where it started the year
• The AUD to GBP exchange rate hit a new 10-month high
• The AUD to JPY exchange rate is back above 75 for the first time since January