Australian dollar faces headwinds

Financial and commodity markets analytics

The Australian dollar rebounded on the back of the US Federal Reserve minutes meeting but some analysts are saying the party may be short lived.

At 5.40pm (GMT) the Aussie dollar was trading at US73.71c up from US73.49 in yesterday’s trade.

Although the Australian dollar rallied, it’s only a question of time before the currency continues a downtrend according to Commonwealth Bank of Australia currency strategist Joseph Capurso,

"The Aussie is a volatile currency and it will dip under US70¢ by the end of the year but picking a time is difficult as you don't know what will come out of left field," Mr Capurso said.

"But any significant changes are more likely to be driven by offshore events rather than domestic data." he added.

Analysts from Fibogroup forex brokers see a significant resistance point at around the US73.60c level for the Australian dollar against the Greenback in the nearest future which may be a solid chance for a short trade if the Aussie dollar reaches the top end of the range.



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