Forget a weakening economy and the prospect of further monetary easing. Here’s what will keep the Aussie dollar robust in the months ahead – a rebound in commodity prices and even lower interest rates among the world’s big economies.
“It (the Australian dollar) has been the hardest currency to sell over the last 18 months,” Patrick Bennett, foreign exchange strategist at CIBC in Hong Kong told CNBC. “When you’ve still got policy levers in global central banks accommodative, currencies like the Aussie dollar are going to gain, outperform.”
The Australian dollar, trading around $1.057 on Tuesday, has risen about 4 percent since October, taking interest rate cuts by the Reserve Bank of Australia (RBA) in October and December in its stride to remain comfortably above the $1-mark.