Australian Dollar Hits 2021 Low but St George Warns of Fall to 0.70

Foreign exchange analysts at Wall Street banking giant Morgan Stanley aren't convinced the Reserve Bank of Australia is going to become a source of significant source of upside impetus.

The Reserve Bank of Australia could increasingly become a source of support to the Australian Dollar when it announces what amounts to a 'soft taper' at its July policy meeting.

The Pound-to-Australian Dollar exchange rate could potentially sustain a move above 1.84 during the weeks and months ahead if Australia’s ongoing battle to revive a long-inadequate inflation pulse continues to render the antipodean unit a laggard among major currencies.

The Pound has reached a new seven-month high against the Australian Dollar ahead of the weekend amidst a critical break lower in the headline Australian-U.S. Dollar exchange rate (AUD/USD) and a potential turn in price of commodities.

Australia's slow vaccination rollout leaves the country vulnerable to further cycles of economically damaging lockdowns, and this could be one reason why the Australian Dollar is underperforming shows a new analysis.

Given the strength of Australia's trade dynamics its currency could be notably stronger, with analysts saying a failure to rise can be placed squarely on the Reserve Bank of Australia's doorstep.