Climbing commodity prices are a good catalyst to provide support to the Australian dollar. Subsequently, economists at Rabobank expect the AUD to break with its status of a high-risk currency and forecast the AUD\/USD at 0.74 by year-end.
AUD\/USD to break with its traditional role of \u2018higher risk\u2019 G10 currency. Commodity exports offer the Australia economy good insulation and should provide support to the AUD\/USD.
The strength of commodity prices combined with Australia\u2019s much improved current account position suggests that there is good reason to expect AUD\/USD to break with its traditional role of higher risk G10 currency.\u201d
\u201cWe have retained our year-end forecast of AUD\/USD 0.74\u201d, said Rabobank economists. The Australian stock market is sharply higher on Tuesday, extending the gains in the previous two sessions, with the benchmark S&P\/ASX 200 moving above the 7,100 level, following the mixed cues from Wall Street on Monday, on a spike in crude oil prices and as traders continue to monitor developments surrounding the ongoing Russia-Ukraine crisis after the countries wrapped up the first round of talks.
Traders also await the Reserve Bank of Australia’s decision on interest rates, which is widely expected to be held at record low.
The benchmark S&P\/ASX 200 Index is gaining 107.40 points or 1.52 percent to 7,156.50, after touching a high of 7,156.90 earlier. The broader All Ordinaries Index is up 116.20 points or 1.59 percent to 7,439.40. Australian stocks closed notably higher on Monday.
The Reserve Bank has revealed its latest cash rate call, as the majority of mortgage brokers have tipped there will be an uptick by the end of 2022.
The Reserve Bank of Australia (RBA) has decided to maintain the cash rate at its record low level of 0.1 per cent, in line with its previous expectations.
Russia\u2019s invasion of Ukraine and the impact of natural disasters on home soil are expected to delay any monetary policy tightening.<\/p>\n","protected":false},"excerpt":{"rendered":"
Climbing commodity prices are a good catalyst to provide support to the Australian dollar. Subsequently, economists at Rabobank expect the AUD to break with its status of a high-risk currency and forecast the AUD\/USD at 0.74 by year-end.AUD\/USD to break with its traditional role of \u2018higher risk\u2019 G10 currency. Commodity exports offer the Australia economy …<\/p>\n","protected":false},"author":13,"featured_media":31723,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[7063,7642,8920,8565,8649,6871],"class_list":["post-61117","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-aud-usd","tag-australian-economy","tag-commodity-prices","tag-g-10","tag-rabobank","tag-usd"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/61117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=61117"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/61117\/revisions"}],"predecessor-version":[{"id":61121,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/61117\/revisions\/61121"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/31723"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=61117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=61117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=61117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}