The Australian dollar had rather nice rally last week. Can it keep gains this week or even move higher? Analysts disagree on this matter.
There are not many important events over the week, therefore the reasons for the Aussieâs rally should remain in place. The most important of them is Ben Bernankeâs testimony that made investors less concerned about possible trimming of Federal Reserveâs stimulus and more willing to risk. The positive mood stayed this week, continuing to drive the US dollar down and riskier currencies up. Among positive news specific for the Australian currency was the release of the central bank’s minutes that show small chances for expansion of accommodation in the near future. Such fundamentals allowed DailyFX to release optimistic forecast for the Australian dollar.
Not everything looks rosy for Australia and its currency though. The main concern is China and its economic growth that shows tendency to slow. The Asian country is the main trading partner of Australia, making Chinaâs economic slowdown especially hurtful for Australian assets. Such worries made Forex Crunch bearish on the Aussie.
The major report for the Australian currency will be inflation data for June. It is expected to remain almost unchanged from the previous reading. Difference to either side may affect the Aussie to a great degree.
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