The Australian greenback rallied sharply in the course of the previous buying and selling week, ending buying and selling as the strongest most-traded foreign money on the Foreign exchange market. Different commodity currencies joined the rally, whereas safer currencies have been left in the mud.
Markets were driven by risk appetite principally for the entire week. Whereas there have been loads of causes for optimism, together with the optimistic outlook for international financial restoration and hopes for fiscal stimulus in the United States, market analysts named one other issue as the main driver for the risk-on commerce: the rally in the metal market. In specific, copper rallied previous the $4 degree for the first time since 2011. Whereas Australia exports copper too, Australia’s main export is iron ore, which additionally has been displaying superb efficiency recently.
In the meantime, the Canadian greenback joined the rally as properly however was underperforming in comparison with different commodity currencies. There have been numerous causes for that, together with poor domestic macroeconomic data and crude oil prices. Whereas crude oil rallied at the start of the week attributable to the excessive colds in the United States, with the West Texas Intermediate grade rising above $60, prices retreated later and it seems like crude has hit the prime, at least for a brief time period.
The New Zealand greenback was also strong, although there have been only a few main occasions driving the kiwi particularly in the course of the previous week. The subsequent week can be totally different as the financial coverage assembly of New Zealand’s central bank would be the spotlight of the week.
AUD/USD rallied from 0.7761 to 0.7868 in the course of the week, touching the highest degree since March 2018. EUR/AUD dropped from 1.5606 to 1.5399 — the lowest since December 2018. AUD/CAD superior from 0.9841 to 0.9925, reaching the highest since June 2018.
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