AUD/USD: Further gains to 0.7850 in the first quarter – CIBC

The Australian dollar was amongst the strongest major currencies in the last quarter of 2020 and has begun 2021 in a similar fashion. Economists at CIBC Capital Markets look for further strength in the AUD/USD pair amidst a broadly weaker USD and economic recoveries.

Key quotes

“From present levels, we target further gains in AUD/USD, to 0.7850 in Q1.”

“A rebound in domestic economic activity, underpinned by accommodative monetary policy, was a strong driver of AUD strength to date. We anticipate that support to continue.”

“The apparent shrugging off of trade tensions between Australia and China is notable, as there remains a clear sense of market caution over a situation that generates plenty of headlines. The significance being, that should some resolution be found, or tension itself calm, we would anticipate a positive response in AUD.”

“On trade, the contribution of iron ore cannot be dismissed, any talk of that market between Australia and China would be concerning. Unless that is the case, we remain bullish and buyers of AUD weakness.”


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

AUD/USD refreshes intraday low near 0.7750 ahead of Aussie Retail Sales, Trade Balance

AUD/USD extends the previous day’s losses from weekly top. RBA failed to entertain markets but Treasury yields stole the show. Risk-off heavies the quote ahead of final readings of key data.


GBP/USD: Drops towards 1.3900 on the way to two-week-old support line

GBP/USD teases intraday low of 1.3921, currently down 0.14% around 1.3932, during Thursday’s Asian session. In doing so, the cable stretches the pullback from a one-week-old resistance line as MACD recedes bullish bias.


Gold: Bears looking to test bull's commitments at $1,698

The gold price is no longer showing signs of an immediate advance back to test $1,760. Instead, gold failed to extend beyond $1,740 and printed a fresh low to $1,702 as the US dollar and yields came up for air.

Gold News

Dogecoin price on the brink of a 40% explosion towards $0.07

Dogecoin price has been trading sideways for the past two days and inside a downtrend since its new all-time high of $0.087 on February 7. Now, the favorite canine-cryptocurrency is ready for a new leg up.

Read more

DXY continues to gain on Wednesday, eyes 91.60

US dollar firm and approaching Feb 4th highs from a significant technical support structure. US economy moderately gathering pace according to the Fed's Beige Book.

US Dollar Index News