In the fallout of yesterdays RBA (Reserve Bank of Australia) minutes, todays trading has seen continued strength for AUD buyers. Todays trading seen a day high of 1.6579, an increase of just over 1 cent from yesterdays day high. This is very similar to the trend that we saw through May, a growth of between 0.5 to 1 cent per day.
US Dollar to Impact Aussie
Tomorrow the Federal Reserve of the USA meet to discuss their monetary policy. There are a lot of murmurings of further Quantitative Easing to stimulate the US economy and take control of US inflation. With this in mind, there is a strong chance that the US Dollar could weaken. Should the US economy start weakening, it could take other economies with it, I.e Australia.
I believe that the next few weeks will see further Aussie Dollar weakness, with the next resistance point at 1.7050. As per my previous posts, I believe Aussie Dollar sellers would do well to sell their positions sooner rather than later, as we are still at historically excellent levels for AUD to GBP. On the flipside, Aussie Dollar purchasers may look to but at the 1.70 region as a target. Should you have a position to buy, please feel free to contact me and I can discuss this option with you.
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