# Westpac on why the Australian dollar is so strong (AUD rise ahead of fair value model)

> Westpac strategists say the Australian dollar has risen 5.7% over eight weeks, well ahead of their fair value model. They attribute up to 70% of the rise to US dollar weakness, and note that commodity prices are at one-year highs.

- Date: 2018-01-22 · published 2018-01-22T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/67230-westpac-on-why-the-australian-dollar-is-so-strong-aud-rise-ahead-of-fair-value
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

The analysis suggests the Aussie is overextended, which could lead to a correction. Strong Australian commodity prices and a weak US dollar support dollar-priced export values.

## Read by commodity

- DXY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-09-21 | [Dollar eases after Fed-spurred rise, yen stronger ahead of BOJ](https://feedsoft.ai/events/34309-dollar-eases-after-fed-spurred-rise-yen-stronger-ahead-of-boj.md) | +1.7% | +2.3% |
| DXY | 2024-11-15 | [Australian Dollar holds recovery ahead of US Retail Sales data](https://feedsoft.ai/events/27662-australian-dollar-holds-recovery-ahead-of-us-retail-sales-data.md) | +0.1% | +0.2% |
| DXY | 2018-01-17 | [The US Dollar is Not Yet Ripe For a Reversal, Says Westpac](https://feedsoft.ai/events/67170-the-us-dollar-is-not-yet-ripe-for-a-reversal-says-westpac.md) | -0.3% | -0.5% |
| DXY | 2024-10-31 | [Australian dollar defies the triple threat - MacroBusiness](https://feedsoft.ai/events/28126-australian-dollar-defies-the-triple-threat-macrobusiness.md) | +0.7% | +1.4% |
| DXY | 2017-09-25 | [It's risky to go long on the dollar \| The National](https://feedsoft.ai/events/69151-it-s-risky-to-go-long-on-the-dollar-the-national.md) | +1.2% | +2.3% |

## Sources

- investinglive.com: https://investinglive.com/news/!/westpac-on-why-the-australian-dollar-is-so-strong-aud-rise-ahead-of-fair-value-model-20180122

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