Australian Dollar Going Up as Market Mood Gets Better
The Australian dollar (AUD/USD) is rising again. This is the fourth day in a row it has gone up. The reason is that the market mood is getting better.
People feel more hopeful because the US and China are talking again about trade. There’s an important deadline in August, so both sides want to reach a deal. This is good news for traders.
Also, the US and Japan signed a new trade deal. This made investors feel more confident about the global economy.
In Australia, a new report showed that the economy is slowing down. Because of this, the Reserve Bank of Australia (RBA) might lower interest rates again to help the economy grow.
At the same time, the US dollar is getting weaker. When the US dollar falls, other currencies like the Aussie usually go up.
Impact:
The AUD/USD could keep going up if trade talks go well and the US dollar stays weak. If the RBA cuts interest rates, it might also help the Aussie stay strong.