AUD is expected to weaken further against the US dollar
In the last week, the AUD/USD value continued to decrease and overall it dropped 230 points. The pair closed at 0.7319 last week. In the upcoming week also, the AUD is expected to weaken, but there are two main events that can influence the direction of the currency. Trump’s victory has proved to be extremely positive for the US dollar and the currency will continue to ride the tide. The unemployment claims reduced to a 43 year low in the US as the inflation numbers remain mixed. In Australia, employment change was less than what was expected.
Christopher Kent, Assistant Governor of RBA is expected to give a speech that can make the market more bullish for the Australian dollar. The markets are still experiencing decline and it is expected that it will go down by -1.5% in the upcoming week.
During the beginning of last week, AUD/USD opened at 0.7551 and increased to 0.7581 after which it went downhill. While it maintained stability for some time at 0.7597, it tumbled down to 0.7319 by the end of last week. The momentum gained by the US dollar has directly affected the value of AUD since the victory of Donald Trump. The entire market is hoping to have a favorable greenback and investors are expecting that the Fed will increase the rates. This week too, a similar trend is expected with the AUD/USD currency pair.
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