The Australian has performed a classic move some 4% lower or stronger against the pound in the last week. This has caught everyone by surprise and follows some of the best buying levels seen since 2009. Current levels are still significantly higher than last year and still represent a good opportunity to buy.
The question would now be will this resurgence for the Aussie continue? In short I think the negatives surrounding the Aussie remain but the significance of the reason for the latest move does rule out major AUD weakness in the short term anyway. This reason is the removal of their bias towards a weaker AUD. Instead of cutting interest rates to weaken the currency as many had expected, they are remaining in a neutral stance and therefore the economic data will become more significant as an indicator to any future direction of the RBA.
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