Loading...

Home pages - full list (A-Z)

Commodities Boom Will Take Australian Dollar to US$0.74

The Australian dollar is forecast to climb to US$0.74 in the coming months, supported by a commodities boom that has seen the price of Australia’s largest export, iron ore, climb to a 5-year high.

Currency-News AUD GBP USD
Email share     Facebook     LinkedIn    Twitter
 

As for most G10 currencies, Monday was uneventful for the Australian dollar. That’s OK though, since it has been putting in solid shifts of late. In fact, the commodities-sensitive Aussie dollar was among the best-performing currencies last week, having bettered all other majors and all non-majors except for the oil-driven Norwegian krone, Russian ruble and Mexican peso.

AUD to USD - 1 Week chart to 15 Apr
AUD/USD - 1 Week chart to 15 Apr

Now at US$0.719, the Australian dollar is testing its 200-day moving average for only the second time this year, and for only the third time in the past 12 months, marking significant improvement from January. Traders had been fearing the worst when, on January-3, a “flash crash” had AUD/USD trading 8 percent below its average at a 10-year low of US$0.674.

Supporting the Aussie since mid-March has been an increase in risk appetite among investors, but it should be said that investors are fickle and that “risk on” rarely lasts long. More importantly, commodities markets have thrived in 2019, with the price of iron ore—Australia’s largest export—reaching another 5-year high on Monday on the back of improved demand from Chinese steelmakers.

Per analysts at National Australia Bank, between now and the end of June, the Australian dollar still has a few percentage points worth of upside in its locker.

In a note to clients on Friday, NAB wrote that the “recent failure at 2019 lows confirms a firm medium-term base” and that “AUD/USD dips will remain shallow in the coming weeks as price builds towards … US$0.74.”

The Australian dollar came close to buying US$0.74 in December but hasn’t been consistently valued at or above that level since July of last year.

 

Further Reading

 

Swiss Franc Slumps to 6-Month Low Versus Euro

The Swiss franc continued its shocking run of form on Tuesday, slipping against the euro to its weakest level in 6 months.

Updated: 23 Apr, 2019

8 Percent Drop Coming Soon for Australian Dollar; RBA “Wants a Weaker Currency”

HSBC has reaffirmed its US66¢ year-end forecast for the Australian dollar, thereby signalling an upcoming 8 percent slide in the world’s fifth most traded currency.

Updated: 22 Apr, 2019

WorldFirst World Account – BER Review

WorldFirst World Account – Independent BER Review World Account: A Summary WorldFirst, a market leader in the international payments space, offers a multi-currency “World Account” that allows businesses to hold, send and receive funds in 8 major currencies (GBP, EUR, USD, AUD, CAD, JPY, SGD and NZD). With a World Account, businesses can invoice customers […]

Updated: 23 Apr, 2019

SGD/MYR at 17-Month High; Ringgit Slumps on FTSE Index Deselection

What is arguably Southeast Asia’s most important exchange rate, Singapore dollar-Malaysian ringgit, leapt on Thursday to its highest level since November 2017, driven by FTSE Russell’s decision to reconsider Malaysia’s inclusion in an important bond index.

Updated: 18 Apr, 2019

Brexit This Year Now a Toss-Up, Bookmakers Say; What Next for Pound?

GBP Pound Sterling Brexit Deal on Financial Services

With the chance of a 2019 Brexit now reduced to 50 percent, the pound’s value is likely to remain capped for the time being, most likely near US$1.34, experts say. On the downside, US$1.24 is likely should the latest Article 50 extension be used to hold a UK general election.

Updated: 14 Apr, 2019

  

Tags: Currency-News , , ,

 
Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.
   

Get a Better FX Deal when you Send and Spend Abroad.

 

Do NOT follow this link or you will be banned from the site!