Analysts are predicting that as the global economy recovers, an increasing demand for commodities will prove beneficial to the Australian and Canadian dollars with both expected to reach, or even exceed, parity with the US dollar.
Ã¢â‚¬Å“The global economy is going to strengthen, and the recovery is going to broaden out from what has so far been a China-, Asia-led global recovery,Ã¢â‚¬Â said John Kyriakopoulos, head of currency strategy in Sydney at National Australia Bank Ltd., the most accurate predictor for both currencies last year.
Ã¢â‚¬Å“WeÃ¢â‚¬â„¢re forecasting parity for the Aussie dollar, and we actually think the Canadian dollar will go through parityÃ¢â‚¬Â by March, he said.
The Australian dollar rose 0.7 percent to 93.16 U.S. cents as of 2:15 p.m. in Sydney and was 2009Ã¢â‚¬â„¢s third-best performer among the 16 most-traded currencies. CanadaÃ¢â‚¬â„¢s loonie, nicknamed for the aquatic bird on its dollar coin, advanced 0.4 percent to C$1.0260, after gaining the most since 2007 last year.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.