It has been a good week for the Australian Dollar, gaining more than 5% to the US Dollar since the opening of the market on Monday. The Aussie’s vitality comes from all the stars aligning in support of the currency.
On Monday the Royal Bank of Australia decided to keep rates on hold at a time when other central banks are cutting while the recovery in oil prices also helped as the Australian Dollar’s performance is closely linked to that of commodities in general. Finally, the improvement in market sentiment, with investors glass half-full stance is also offering support to the risk-related Aussie following signs that the number of coronavirus infections is declining in Europe and the US, the current epicentres of the disease, as well as the reopening of Wuhan for business after three months of quarantine.
