Daily Currency Update

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Aussie breaks through 0.77 to reach levels not seen since 2018

AUD - Australian Dollar

The Australian Dollar ended 2020 breaking through yet another yearly high, peaking at 0.7741 before taking its foot off the gas for New Year Celebrations. The Aussie opens in 2021, slightly softer at 0.7709 but still amongst the top performers in 2020 after posting gains for seven consecutive weeks to reach levels not seen since April 2018. With little on the economic calendar to drive momentum, the Aussie continued to trade primarily on the rapidly weakening US Dollar, positive risk sentiment and COVID headlines.

Moving into 2021, the Aussie is expected to continue the current trend with little on the economic calendar to digest to start the new year.

Key Movers

The US Dollar continued to weaken throughout the close of 2020, softening against most of the majors. The impetus for the falls continued to be broader macro-economic in nature in the absence of any economic data. With the United States economy expected to falter in its recovery, COVID still running rampant, political risks expected to rise and the Federal Reserve printing money, the US Dollar finds itself under continued, sustained downward pressure.

Most of the majors have benefited from the Greenbacks erosion to some degree but the Kiwi, Sterling and Aussie are amongst the top performers.

Expected Ranges

AUD/CAD: 0.9748 - 0.9896 ▲

AUD/EUR: 0.6252 - 0.6346 ▲

GBP/AUD: 1.7600 - 1.7865 ▼

AUD/NZD: 1.0631 - 1.0792 ▲

AUD/USD: 0.7642 - 0.7757 ▲