australian dollar outlook on friday

We consider the latest short-term forecasts for the Australian dollar.

A note from FXWW confirms the outlook has turned pro-Aus dollar:

"AUD/NZD is trading to me like a pair that will soon turn higher, and this is based on price-action observations rather than any technical or fundamental view.

"Yesterday’s trade-of-the-day to buy near 1.1240/50 proved to be a winner and I’m staying in the buy-dip camp here. The AUD also looks set to retrace some recent losses against the GBP (see chart) and GBP/AUD could easily fall back towards 1.6900."

(If you are looking to lock in this recovery in the Australian dollar, consider utilising a forward contract to protect against the potential for declines. If you want to buy Aus dollars and are worried about the resurgence in the currency you will want to transact at bank-beating exchange rates. Find out more about your options here).

Ipek Ozkardeskaya  at Swissquote Bank says the Australian dollar's strength is unlikely to be challenged for the time being:

"The Aussie was bid across the board. AUDUSD advanced to 0.9448, with eyes set on two-week high of 0.9457, if broken will open the way to 0.9529 -month high.

"Tuesday’s hawkish RBA statement leads some players to bet on a potential rate hike on the way. The bias is on the upside."

Emmanuel Ng at OCBC Bank says a weak US dollar could be providing a great deal of support to the Aus dollar:

"Negative dollar vibes may continue to support the pair with the Australian Sep services index also improving significantly to 47.1 from
39.0 the previous month.

"We retain a buy dips posture for the pair in the interim with base building behavior still expected around current levels. Support is seen on dips towards 0.9285 area while 0.9435 should cap pending further cues."