The Australian dollar exchange rate has gained a lot of price appreciation since declined to 0.72 against the U.S. dollar exchange rate in the mid of this year. AUD/USD pair is currently trading around 0.764 after briefly moving above 0.77 in the last week. In the case of another surge, traders are expecting strong resistance of Aussie conversion rate in the range of 0.7757 and 0.7833 to limit upside.
The recent gains in the AUD/USD exchange rate were the result of improvement in commodity prices, change in the Australian interest rate and monetary stimulus measures. On the other hand, some weaknesses in the US dollar to AUD conversion rate have also supported this pair.
The Australian exchange rate slipped slightly during Monday trade, amid a dip in the commodities’ prices and lack of new fundamental drivers, which exerts downward pressure on the AUD to USD converter rate. Market traders are now enthusiastically waiting for new economic data, including new home sales and manufacturing PMI, and the Jackson Hole Symposium.
Australian rate to the US dollar is quite dependent on the market news’ and commodity prices, as Australia is the globe’s largest mining country and the largest producer of iron ore, copper, silver and others. In addition, the country continues to work on economic stimulus measures and traders are expecting another cut in its interest rate.
Some traders believe that AUD to USD currency rate has very limited downside from here considering the expected cut in interest rates. On the other hand, volatility in the US dollar and fed’s policy has also been supporting Australian currency rate against the US dollar conversion rate.
Improved consumer confidence within the domestic economy is also likely to give a support AUD. USD is likely to remain under pressure ahead of Yellen comments – interest rate change bets could create extra pressure on the US dollar against the basket of other currencies including the Aussie Dollar.