The Australian dollar has racked up its 6th straight day of gains today taking it to the highest level this year and some predict it may be headed for US$80c in the nearest future.
At 9.33am (GMT) the Aussie dollar was trading at US$73.59c up from US$73.32 in yesterday’s close.
Riding high on the back of US dollar weakness and a dovish speech by US Federal Reserve president Janet Yellen yesterday who noted that further rate rises in the US are not guaranteed which caught the market off guard and left investors exiting the US dollar.
Some now predict that the Australian dollar looks set to continue its uptrend,
“There could be no stopping it this side of US80c in coming weeks amid ingrained US dollar bearishness,” said Ray Attrill, head of currency strategy at National Australia Bank.
Commodity prices such as Iron ore, which has recovered substantially in the past few months, have also helped the Aussie dollar in its recent bull run.
Some however are not so confident that the rally can last and warn that a serious reversal of trend may be in the making
“Hopes of the pair bursting through the long-term trendline are beginning to circulate and the bulls are gearing up for yet another push higher. However, this may all be a set up for a major slump that could erase the entirety of the rally seen over the prior two months,” Noted market analyst Stephen Knight from Blackwell Global