The Australian dollar is going ballistic

Photo: South Korean Defense Ministry via Getty Images.

The Australian dollar has gone ballistic in Asia, soaring to the highest level in over two years on the back of renewed US dollar weakness partly driven by political events in America and optimistic overtones in the minutes of the RBA’s July monetary policy meeting.

Just look at the AUD/USD 5-Minute chart. Boom.

AUD/USD 5-Minute Chart

It currently buys .7885, having hit a high of .7895 just a few minutes ago.

And, having clearly broken above the April 2016 high of .7835, the Aussie has found plenty of willing buyers to propel it to the highest level since May 22, 2015.

AUD/USD Weekly Chart

It’s been a remarkable move in a relatively short period of time.

The AUD/USD is now up 7.6% from the recent low of .7326 struck in mid-May, extending its year-to-date gains to 9.3%.

Earlier this week, the National Australia Bank said that the Australian dollar was overvalued by around 10% on a real trade-weighted basis, suggesting that it that should “concern” the RBA given the headwinds it poses for Australia’s trade-exposed sectors.

Seemingly, those concerns have only become greater following the move today.