# The rocketing Aussie is shaping up as a new threat to the profit season

> The Australian dollar rose above US72 cents for the first time since early 2019 and is expected by some strategists to rise further. The rally is attributed to US dollar weakness as its safe-haven status weakens amid rising COVID-19 cases in the US. Stronger Aussie currency could reduce earnings for ASX companies with US dollar exposure.

- Date: 2020-07-31 · published 2020-07-31T12:00:00.000Z
- Category: macro · region Australia · magnitude low
- Page: https://feedsoft.ai/events/52394-the-rocketing-aussie-is-shaping-up-as-a-new-threat-to-the-profit-season
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

A stronger Australian dollar reduces the local cost of imported feed ingredients and lowers the competitiveness of Australian exports. Dollar weakness also supports dollar-priced commodities such as grains and oilseeds.

## Read by commodity

- DXY: bearish ▼
- AUDUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-07-29 | [Even the loonie is rising against the U.S. dollar as the Fed faces currency threat: Don Pittis \| CBC News](https://feedsoft.ai/events/52356-even-the-loonie-is-rising-against-the-u-s-dollar-as-the-fed-faces-currency.md) | +0.4% | -0.4% |
| DXY | 2022-09-22 | [Japan Intervenes to Prop Up the Sliding Yen - The New York Times](https://feedsoft.ai/events/39809-japan-intervenes-to-prop-up-the-sliding-yen-the-new-york-times.md) | +1.9% | +1.8% |
| DXY | 2018-02-26 | [Why the Aussie is up and the Greenback is down - Andrew Macken \| Livewire](https://feedsoft.ai/events/66750-why-the-aussie-is-up-and-the-greenback-is-down-andrew-macken-livewire.md) | +0.6% | -0.3% |
| DXY | 2018-01-29 | [The rocketing rand - Moneyweb](https://feedsoft.ai/events/67275-the-rocketing-rand-moneyweb.md) | +0.4% | +1.0% |
| DXY | 2019-06-20 | [As the U.S. economy tilts toward concern, Canada's is on the upswing: Don Pittis \| CBC News](https://feedsoft.ai/events/58836-as-the-u-s-economy-tilts-toward-concern-canada-s-is-on-the-upswing-don-pittis.md) | -1.1% | -0.8% |

## Sources

- fool.com.au: https://www.fool.com.au/2020/07/31/the-rocketing-aussie-is-shaping-up-as-a-new-threat-to-the-profit-season/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.