The Australian dollar seems unstoppable recently. It now trades at the highest levels in the float era, after making a distinctive break. Update on the surging currency.
AUD/USD now trades at 1.0273, after breaking the previous high of 1.0254 set at the end of December 2010, when volume was very thin. After it broke the 1.0180 resistance yesterday, it continued gradually until the previous historic high and was capped by it, until it made the breakout now.
The Australian dollar began floating in the free market at the beginning of the 80s, so this is the highest level since at least 1983. There’s more room for rises after this breakout. In case of reversal, 1.0254 serves as support, followed by 1.01080. For more levels, see the AUD/USD Forecast.
Australia enjoys the a low level of unemployment, only 5%. In comparison, the unemployment rate in the US is 8.9% and the Euro-zone’s rate is 9.9%, significantly higher. The Australian economy is booming, with healthy growth rates. Australia never plunged into recession following the financial crisis – it had only one quarter of contraction. Australia also has a high interest rate, 4.75%, which attracts investors seeking for high yields with relatively low risks.
Among the reasons for Australia’s success are: Chinese growth, the fresh spike in commodity prices and more positive reasons to support its economy. See yesterday’s article about reasons for the Aussie’s breakout. This followed the previous breakout.