The Australian dollar is mostly stronger today, and continues to make gains against the US dollar, the euro and the Japanese yen. Commodity prices have been strengthening in recent times, including the prices of key Australian exports such as copper. Optimism for global growth remains high, and the current economic backdrop is helping the Aussie climb higher. Looking at the Chinese yuan, the currency is once again stronger against the US dollar. USD/CNH is now trading below 6.34. As China is Australia's largest export destination, the Aussie tends to closely track developments in Chinese financial markets. Our short-term and medium-term outlook on the currency remains bullish.
AUD/USD is up and trading just above 0.8070. EUR/AUD is down and trading above 1.5360. GBP/AUD is down and trading above 1.7620.
There is no significant economic data relating to the Australian dollar this week. Last week, new employment numbers were significantly ahead of expectations.
As the Australian dollar strengthens, we are upgrading the currency to bullish. Looking at a daily chart of the Aussie, the currency is looking overbought. This is based on various technical indicators.
As the Australian dollar rebounds, we are now bullish on the Australian dollar in the medium-term. Looking at a weekly chart, the Aussie is trading within normal conditions. Our analysis is based on various technical indicators.