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The rising momentum of the Australian dollar against the US dollar is facing exhaustion

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The rising momentum of the Australian dollar against the US dollar is facing exhaustion, and the epidemic and geopolitical situation may become a roadblock.


The rising momentum of the Australian dollar against the US dollar is facing exhaustion


The Australian dollar strengthened slightly against the US dollar on Monday, mainly driven by the continued decline of the US dollar index in the face of further easing expectations of the Fed. However, in a horizontal comparison, the Australian dollar's trend is still weaker than that of European currencies, and after hitting a new 15-month high since April 2019 on Wednesday, it showed a state of stagnation.


Analysts pointed out that, on the one hand, the new round of the epidemic in Australia has dealt a blow to investor confidence. On the other hand, the impact of uncertainty in global trade and geopolitical situation has also caused the sensitive Australian economy to bear the brunt. , Which makes the exchange rate of Australian dollar against the dollar face strong resistance at the 0.72 mark in the short term.


In addition, the previous continued strength of the Australian dollar exchange rate may also cause subtle changes in the attitude of the Reserve Bank of Australia. After that, it may consider taking measures to curb the exchange rate from further strengthening in order to protect its export industries that are already facing external uncertainties. This has offset the previous upward movement of the Australian dollar due to the weakening of the US dollar and the recovery of Australian exports. Investors will wait and see the trend of more Australian domestic economic data this week. During this period, the Australian dollar exchange rate is still likely to remain high temporarily. Consolidate and wait for the final conclusion of the new round of the Reserve Bank of Australia decision next week.

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