The Australian dollar (A$) continued to rebound this week, clawing back recent falls to trade at 88US¢, after averaging 86US¢ last week. This marks an increase of 8 percent since the beginning of June, when the lower A$ traded below 81US¢.
The A$, which initially fell on fears that the European debt crisis would spread, has appreciated in the last fortnight as confidence returned to financial markets, including for commodity backed assets such as the A$.
General consensus seems to be that the A$ will continue to firm, with leading financial institutions all recently forecasting the dollar between 90-93US¢ by the year's end.
Reprinted from ABC Rural, AU