Markets eye economic data and global trends for next move.
Hawkish RBA Fuels Currency Strength
The Australian dollar has notched its first weekly close above the US70¢ mark in more than three years, signalling renewed strength in the currency. At the time of writing, the Aussie ended last week at US70.13¢, up about 0.7 per cent, marking a third consecutive weekly gain and its first close above the key 0.7000 level since January 2023. The rally came during a turbulent period across global markets. Equities, cryptocurrencies and precious metals experienced sharp swings, with heavy sell-offs earlier in the week followed by a rebound into the weekend. Despite the volatility, the Australian dollar held firm.
Interest Rate Gap Supports the Aussie
Currency analysts point to the Reserve Bank of Australia’s recent policy move as a major driver behind the strength. The central bank delivered its first rate hike in more than two years and struck a hawkish tone, widening the interest rate differential in favour of the Australian dollar against the US dollar.
This shift in policy direction helped cushion the local currency from broader market swings and attracted investor demand for higher-yielding assets.
Key Data and Global Trends in Focus
Market attention is now turning to upcoming domestic economic data and central bank commentary ahead of the next RBA board meeting. Indicators such as consumer confidence, business sentiment and speeches from senior policymakers are expected to shape near-term direction. Global factors will also remain crucial. The path of US labour market data and overall risk sentiment across financial markets could determine whether the Australian dollar extends its rally. After a recent pullback from around US70.94¢, technical support appears to be holding between US68¢ and US69¢. A retest of the recent high is now in sight, with potential to push toward the US71.50¢–US72¢ range if the RBA maintains its tightening stance.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Can the Australian Dollar Stay Above US70¢ After Its First Weekly Close in Three Years?
Highlights:
Hawkish RBA Fuels Currency Strength
The Australian dollar has notched its first weekly close above the US70¢ mark in more than three years, signalling renewed strength in the currency. At the time of writing, the Aussie ended last week at US70.13¢, up about 0.7 per cent, marking a third consecutive weekly gain and its first close above the key 0.7000 level since January 2023. The rally came during a turbulent period across global markets. Equities, cryptocurrencies and precious metals experienced sharp swings, with heavy sell-offs earlier in the week followed by a rebound into the weekend. Despite the volatility, the Australian dollar held firm.
Interest Rate Gap Supports the Aussie
Currency analysts point to the Reserve Bank of Australia’s recent policy move as a major driver behind the strength. The central bank delivered its first rate hike in more than two years and struck a hawkish tone, widening the interest rate differential in favour of the Australian dollar against the US dollar.
This shift in policy direction helped cushion the local currency from broader market swings and attracted investor demand for higher-yielding assets.
Key Data and Global Trends in Focus
Market attention is now turning to upcoming domestic economic data and central bank commentary ahead of the next RBA board meeting. Indicators such as consumer confidence, business sentiment and speeches from senior policymakers are expected to shape near-term direction. Global factors will also remain crucial. The path of US labour market data and overall risk sentiment across financial markets could determine whether the Australian dollar extends its rally. After a recent pullback from around US70.94¢, technical support appears to be holding between US68¢ and US69¢. A retest of the recent high is now in sight, with potential to push toward the US71.50¢–US72¢ range if the RBA maintains its tightening stance.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au