The Australian Dollar was little changed at 4-week lows of 0.76437 in early trade on Tuesday as optimism surrounding the passage of US President Joe Biden’s coronavirus relief package fueled a surge in long term bond yields, damaging the risk sensitive Aussie. Local 10-year rate lifted to 23-month highs of 1.818%, even as the RBA held its official cash rate at record low last week, while committing to its plan to buy another A$100 billion of government debt over coming months to keep official borrowing costs down, while the US-10 year yield remained near 13-month highs of 1.599%, amid fears that government aid programs could push the economy into overdrive and stoke inflation. However, Treasury Secretary Janet Yellen said such fears are misplaced, noting that policymakers will be monitoring the situation closely and will be prepared to act if inflation does become a problem.
Historically, the Australian Dollar reached an all time high of 1.49 in December of 1973. Australian Dollar - data, forecasts, historical chart - was last updated on March of 2021.
The Australian Dollar is expected to trade at 0.77 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.75 in 12 months time.