Australian currency has been gaining lately is not a coincidence
Show Me the Money! 28 July, 2020, by Vladimir Rojankovski, Senior Analyst, Grand Capital
The Australian dollar has rallied rather significantly on Monday, showing signs of life yet again as the U.S. dollar continues to get hammered against most currencies. Aussie pierced below 1.40 mark, and now this level became its support, rather than resistance level. Couple of times over the past several trading sessions it tried to approach it, but the big return looked invariably spectacular.
So, this level now can be seen as a cemented support for the Australian currency. It’s further growth towards 1.35 is highly dependent on continuation of gold rally. Australia is the second largest gold producer in the world with 325 tons per year, right after China. By the way, 2019 was a record year for Australian gold production.
So, momentum the Australian currency has been gaining lately is not just a coincidence, and if greenback keeps getting softer, and metals keep getting stronger, it would be hard to find a better choice than to take a chance on the Aussie.
The Australian dollar has rallied rather significantly on Monday, showing signs of life yet again as the U.S. dollar continues to get hammered against most currencies. Aussie pierced below 1.40 mark, and now this level became its support, rather than resistance level. Couple of times over the past several trading sessions it tried to approach it, but the big return looked invariably spectacular.
So, this level now can be seen as a cemented support for the Australian currency. It’s further growth towards 1.35 is highly dependent on continuation of gold rally. Australia is the second largest gold producer in the world with 325 tons per year, right after China. By the way, 2019 was a record year for Australian gold production.
So, momentum the Australian currency has been gaining lately is not just a coincidence, and if greenback keeps getting softer, and metals keep getting stronger, it would be hard to find a better choice than to take a chance on the Aussie.