The Australian Dollar recorded 0.7650 midweek against the US Dollar (USD), posting a new high in the long-term bull trend from the low of 0.6960 back in late January. However, it was unable to push on reversing back to 0.7480 into Friday coming under pressure from Fed speak. The RBA is expected to hike this year, we think this could be as soon as the May meeting with Lowe signalling, they would lift rates over the “coming months.” The AUD has been profiting from surging prices in raw materials lately- Iron Ore has come from 132.00 per tonne mid-March to today’s 154.00. The Federal Reserve signalled they will decrease their massive bond holdings at the pace of 95B a month in line with future tightening in efforts to also shrink their highest inflation in decades. We expect the cross to hold 0.7450 with further upside likely.
The current interbank midrate is: AUDUSD 0.7480
The interbank range this week has been: AUDUSD 0.7464- 0.7658