According to market analysts, the Australian dollar currently has a neutral forecast. Against the U.S. dollar, the AUD has been showing some strength lately, but this was done ahead of the U.S. jobs report for the month of January, and it took into account the fact that many traders believed that the Fed would raise rates again. Jobs reports were weaker than December, but still better than expected. And the Fed did not actually raise rates. This forced the Aussie back off of its one month high against the USD, and back down to where it was.
What the AUD does in the next few weeks against the USD is dependent on U.S. policy right now. The Australian market has declined a bit thanks to falling commodity prices, (more…)