The last two weeks have seen a shift in favour of Sterling of approximately 10 cents. This morning Sterling crashed through the 1.56 barrier against AUD to a day high so far 1.5660.
What is the Prediction?
The Australian Dollar is heavily linked to USD. When the USD strengthened last week and went past parity against the Aussie, the Aussie weakened further to its current position. Therefore it is fair to say that USD strength is a factor that weakens AUD.
Ben Bernanke (Head of the Federal Reserve) makes a speech tomorrow afternoon with many analysts predicting a reduction in Quantitative Easing. his announcement would be very positive for the ‘Greenback’ and could be the catalyst that pushes next weeks trading prices in to the 1.60s.
Australian Dollar sellers would sell at almost record lows at the moment.
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