The Australian dollar edged up on Wednesday. However, it is still holding near a two-month low.
The robust recovery of the U.S. economy reinforced the greenback whereas the global decline of prices for raw materials is making a negative impact on Australia’s economy.
Meanwhile, analysts predict that in the long run, the aussie is likely to remain under pressure from the anticipated interest rate hike by the U.S. Federal Reserve. Moreover, the Reserve Bank of Australia reiterated that its policy is to keep the key rate at the level of 2.5% for long.
On the other hand, Australia’s national currency could be supported by accelerating growth of China’s economy. The recent data on the GDP growth indicates boosting business activity.
Currently, the AUD/USD pair is trading at the rate of 0.9318. The job market data which is to be released on Monday might exert some influence on the currency pair’s movement. The unemployment rate is expected to inch up 6.1% after 6.0% previously.
