Australian Dollar vs US Dollar: Downtrend Channel Intact

The Australian Dollar to US Dollar is steadily channeling lower, according to analyst Yann Quelenn of Swiss broker Swissquote, however, his longer-term pessimistic view is not widely shared.

The Pound to Australian Dollar has continued to fall in its established downtrend following a bout of strength for the Aussie from rising commodity prices and some weakness for the Pound due to uncertainty over Brexit.

Could the next big driver of the Australian Dollar become politics?

The release of the Reserve Bank of Australia’s August board meeting minutes show the Bank could be inclined to raise interest rates sooner than many in the market might be expecting.

The Australian Dollar has been overvalued by a foreign exchange market place far too eager to price in interest rate rises at the Reserve Bank of Australia we are told.

The Australian Dollar traded back and forth in volatile whipsaws on Friday in reaction to comments from Reserve Bank of Australia (RBA) governor Philip Lowe, which were alternately undermining of and then supportive of the currency.

 The Australian Dollar was one of the losers on Wednesday after sabre-rattling between North Korea and the US stoked fears of a war breaking out, which led to a massive exodus from risk into safety.

The downtrend in the Pound to Australian Dollar looks at risk of resuming, as the new trading week begins.