FXStreet reports that the AUD has broken through a number of key levels in search of new-highs as a steady stream of vaccine headlines have balanced the distribution of news flow, acting as a modest tail-wind for the aussie. AUD/USD is trading around the 0.72 level and economists at ANZ Bank expect the pair to move around this level, a test of the 0.75 mark is on the cards though.
“On a domestic front, virus outbreaks across Victoria and New South Wales will challenge the prior view that Australia emerged from COVID-19 in a stronger position relative to peers. Instead, a sustained period of slowdown is now likely, challenging key service sectors in addition to the prolonged hit expected from a lack of migration and tourism.”
“For the RBA, we expect a sustained period of currency overvaluation to draw a pronounced policy response from the central bank, however with fundamental value continuing to drift higher, the RBA will likely have to remain on the sidelines.”
“We maintain our forecast track for AUD/USD near current levels, reflecting a range bound view of the currency and the at-times patchy growth environment expected through 2020. However, we also still expect that the AUD/usd can test as high as 0.75 in this range.”
© 2000-2020. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at firstname.lastname@example.org.