The Australian dollar is gaining strength today, particularly against the US dollar. While AUD/USD fell sharply following President Trump's comments indicating that he supported a "strong dollar", the pair strengthened earlier today. The Australian dollar continues to benefit from rising commodity markets and optimism for global growth. Key industrial commodities such as copper remain strong, while the Chinese yuan has been making gains in recent history. Given that most Australian exports are destined for China, the Aussie tends to track the fortunes of the Chinese yuan. Our short-term and medium-term outlook on the currency remains bullish.
AUD/USD is up and trading just above 0.8080. EUR/AUD is down slightly and trading above 1.5430. GBP/AUD is flat and trading above 1.7640.
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.