A sharp turn of the Australian dollar in the first half of November begins to convince Forex traders that the worst days for the currency may be behind.
Australia put the brakes on a recession in 2018 and reached 10 percent in October, influenced by signs of Sino-US trade tensions weakening, improved terms of trade and robust employment prospects.
Today, there is a sharp reversal of the currency, which until recently was the worst performer among the major currencies this year. Burdened by the actions of the Central Bank, it seems like they intend to keep interest rates at a record low in the long run.
Just a few weeks ago, the Australian dollar was testing 70 US cents, firmly entrenched in a bearish trend that stretched back in January.
According to the senior currency strategist at Westpac Banking Corp. in Sydney, Sean Callow, the decrease in the Australian dollar to annual lows is becoming less and less likely. e expects that any reduction to the key psychological level at the end of the year will be short-lived, and suggests that the currency pair will trade around 0.72 by 2019, which is partly due to stimulus efforts from China, who is Australia's largest trading partner.
