Australian Dollar Is Back In A Bull Run, Reaches 72 Cents

Australian Dollar maintains its impressive recovery after taking a rebound from the lowest levels it traded at last week. It explains the strong come back of the Australian Dollar which resumed to rally against the weakened US dollar. As of 14 January 2019, the Australian Dollar stands at USD 0.720.

In the first week of 2019, the foreign exchange market pulled the Australian Dollar down to USD 0.687 least when the market participant could expect; the Australian Dollar made a rebound with a positive change of as much as 0.58% to US Dollar 0.722. That means against 1 Australian Dollar you can purchase a foreign currency of 0.722 USD.

These upward trends seem to be driven by the US-China trade talks when both the economies were seeking to reach the breakthrough. The crude oil prices have also witnessed a surge of nearly 5% owing to Saudi output cuts and talks between the United States and China.

Concerning UK Pound, an Australian dollar stands at 0.561 GBP whereas, for European currency, the Australian dollar is trading at 0.6286 Euro. The positive momentum in AUD/USD underlines the recent strength seen in Chinese yuan along with softening of interest rates. The People’s Bank of China has slashed the reserve requirement ratio (RRR), lowering the Bank’s reserve requirement.

Moreover, Australian retail sales have witnessed a significant growth on the back of pre-Christmas shopping which has eventually led to the economic growth of Australia’s last quarter of 2018. When market participants were betting a marginal increase of 0.3% in retail sales figures, Australian Bureau of Statistics (ABS) revealed the better than expected results. In the past week, ABS reported a 0.4 percent gain in retail sales in November compared to October on a seasonally adjusted basis.

Following the release of stronger-than-expected results, Australian Dollar jumped to highest levels not seen since mid-December. However, it is expected the gains in November 2018 reflects the hike in household consumption compared to the third quarter’s slower than expected growth.

Sponsored ad by Kalkine

Going Forward, the Reserve Bank of Australia continues to expect an uncertain pattern in household consumption with job growth softening over time while wage growth expected to trend at a slower pace.

On the rates front, Federal Reserves is expected to hike rates twice in 2019 and RBA is likely to introduce a marginal rate cut by the end of 2019. It is supposed to be the time when Australian Dollar could be trending at around 73 US cents.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Facebook Comments

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.


6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report

LEAVE A REPLY

Please enter your comment!
Please enter your name here