The AUD to USD closing in on a 2 year high!
The Australian Dollar is climbing towards 0.74c, a rate we have only seen on two occasions since August 2018. They were both intraday spikes in August this year, however failed to move any further higher. With the USD selling off against most major currencies and the US dollar Index at a two and half year low, the AUD has been able to take advantage of this and push higher due to a multitude of reasons. Even though we continue to see uncertainty around elections, COVID plans, vaccine hopes and city and country wide lockdowns, the local economic data is not having much impact on rates for now which is seeing the market turn against the USD and the local Aussie is benefitting from this.
As mentioned over the last few months, the key was to hold at just above 0.70c which it was able to through out September and October testing that area a few times, and now it's pushed on strongly. The next test is to see how the market reacts at the level of around 0.74c, as this is where is was quickly rejected back in August this year. All in all we are seeing rates are 2 year highs and that is always a positive sign. Please feel free to contact me to speak about potential forward buys, and risk management moving forward.