Aussie Dollar Above US$0.80

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By Rudi Filapek-Vandyck

To use a phrase once championed by TV-popular The A team in the eighties (I believe): I love it when a plan comes together.

As predicted in our Weekly Analysis on Monday the Australian dollar was likely to move to US$0.80 and beyond, and the currency did exactly that last night.

TD Securities global strategist Stephen Koukoulas has jumped on the occasion to reiterate the inhouse view that the Aussie currency has further upside potential, “especially if the RBA turns out to have more than one more interest rate rise in its knapsack”.

TD Securities is looking for the AUD to reach US$0.82 in the next month or two and US$0.84 over the next three months.

While this is not necessarily a view shared by everyone in the market, it would seem the consensus has turned in favour of more AUD strength in the short term, a view supported by technical analysis as well.

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