The Australian dollar continued to strengthen against the dollar on Friday, reaching 73.66 cents this morning. Against the backdrop of the overall weak dollar performance and rising commodity prices, the Australian dollar hit its high since December 2018.
At the Jackson Hole monetary policy seminar on Friday, Fed Chairman Jerome Powell said the Fed would seek to keep inflation at an average of 2 percent, which would be too low for a period to come, and then try to raise it to more than 2 percent.
The central bank's board of directors will meet tomorrow to discuss monetary policy. It is widely believed that the official cash rate is expected to remain at 0.25 percent, but all attention will shift to the interest rate statement it will issue after the meeting, which focuses on the future. The Australian Bureau of Statistics (ABS) will release quarterly gross domestic product (GDP) data on Wednesday, which the local economic division expects to drop 6.0 percent. Also on Thursday Bureau of Statistics the country's trade balance data will be released and monthly retail sales data will be released on Friday. All these economic indicators will affect the Australian dollar this week.
Yahoo Finance believes that from a technical point of view, the Australian dollar / dollar trading will currently fluctuate between 73.62 cents. The support level is expected to be close to 73.25 cents, and any upward momentum may encounter resistance near 74.00 cents.
