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The Australian dollar reached fresh year-to-date highs on Monday, testing 0.74 US cents. The US dollar fell to a two-year low and closed August down 1.5%, its fourth straight monthly decline, after the Federal Reserve's ultra-dovish policy stance.
The RBA is expected to hold rates at 0.25% at its upcoming meeting.
A persistently weaker US dollar tends to support US dollar-priced commodities such as grains and meals, while a stronger Aussie affects Australian import costs. This is a currency-driven move rather than a change in crop fundamentals.
ofx.comTuesdayAug 31, 2020After 1,637 past bearish macro events, US Dollar (Broad) moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), and -0.2% over 20.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
