AUD/USD Performance Chart as at 7:00 p.m. Singapore time, 21/04/11

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HISTORICAL DETAILS 

% Change

1 Wk 2.12%

1 Month 6.57%

3 Months 8.78%

6 Months 10.18%

1 Year 15.55%

 

52 WEEK

High 1.0775

Low 0.8067

 

BLOOMBERG MEDIAN FORECASTS

Q2 2011 1.01

Q3 2011 1.01

Q4 2011 1.00

Q1 2011 0.98

 

DAILY DETAIL

A surge in Australian producer price indices has sent the Aussie up once more against the US dollar, as traders piled in to the currency on the expectation that the rally has some way to go yet. High commodity prices and a softer US dollar were the main drivers, but fuel, food and electricity costs also gained in the first quarter. Surging export prices have raised hopes that the Australian currency is far from overvalued, while good earnings reports from Intel and Apple in the US have put the spark back into risk appetite. Inevitably, the focus will now turn to further rate increases by the Reserve Bank of Australia, as full employment and rising wages in the thriving economy raise the risk of a wage-price spiral. Such an event would force the hand of the RBA, making the Australian currency even more attractive for those seeking higher yield. Chris Beauchamp, London