AUD/USD Reversal After Australian GDP? Could This Week’s Gains Be in Jeopardy?
Staff Editor The Australian dollar was mostly softer against the US dollar after the Australian economy grew slower than expected in the first quarter of 2021. The weaker-than-expected GDP figures have put a damper on AUD/USD, as investors are now questioning whether this week’s gains will be reversed.
It is important to note that Australia has been experiencing an economic recovery since last year and there are many factors at play when it comes to predicting what will happen next with AUD/USD. For example, if global risk sentiment improves or if commodity prices rise, then this could provide support for AUD/USD and help reverse some of its losses from earlier today.
However, there is also a possibility that further weakness in Australia’s economy could lead to more downside pressure for AUD/USD in the coming weeks and months ahead. In addition, any potential changes in monetary policy by either central bank could also impact how well both currencies perform relative to each other over time.
Ultimately, it remains uncertain what direction the AUD/USD exchange rate might take but one thing is certain: traders should keep their eyes open for any news or data releases, which may influence how these two currencies move against each other going forward into 2021.
Read more at DailyFX
