AUD to USD
The Australian Dollar is approaching monthly highs against the US Dollar after a strong night saw the Aussie move up to 0.7782, rates only seen at the start of January 2021, and before that not since April 2018. President's day in the US meant thinner than usual trading volume, and the AUD was able to take advantage of that and closing out the last 7 days up over 1.5%. There is still a lot of positively around the AUD/USD pair at the moment, and even though we saw a slight pull back at the end of January, it's recovered quickly and talks of a retest of old highs around 0.81c are still out there, and something to be mindful of if future planning some USD purchases. Overnight, Copper reached an 8-year high, and with Australian metals contributing largely to the export market, this has been a big positive in support for the AUD in recent weeks.
The Australian Dollar is also seeing highs against many of its counterparts.
AUD/CAD - 0.9834 - highest since June 2018
AUD/EUR - 0.6413 - highest since November 2018
AUD/NZD - 1.0764 - 4 week high, this has been more up and down recently.
AUD/GBP - 0.5609 - lower than it has been, but stuck in a range of 0.54-0.57 since June 2020.
EUR to USD
The EUR has found recent support at $1.20 after a few weeks of selling seen a fall from the highs of $1.23 in January. The past four days have held a very tight range around 1.2130 with no movement on either side. Both markets are waiting for updates on COVID-19 vaccine immunisation to see a slow down in cases, and following that hope of an economic turnaround in both the USA and through out Europe. With so much uncertainty also around the change in government in the US and which bills and infrastructure spending they can get underway there is still an underlying concern around the US and this is showing in the currency with the USD down across the board against a basket of major currencies in the short and medium term.
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