National Australia Bank: Interest rate differentials will drive the Australian dollar higher in the near term

Golden data on August 6th, Rodrigo Catril, an analyst at National Australia Bank, said that with the help of interest rate differentials, the Australian dollar will rise in the coming months. He said, “Risk aversion is currently a major headwind,” but such periods often do not last for several months. "If so, when the Fed cuts interest rates in September, the interest rate differential will support the Australian dollar in the coming months, but investors need to be prepared for some short-term fluctuations. “We will take the break below 0.65 as an opportunity to establish long positions, with a target to test the previous high of 0.6799 in the coming months.”