The Australian dollar is going nuts

(Photo by Rob Stothard/Getty Images)

The Australian dollar is closing in on US75c.

Here’s the chart, via Finviz. It shows “the battler”, as it’s known, has popped through the market resistance it hit early this morning. As BI’s David Scutt noted earlier, the risk appetite in the post-Brexit world didn’t really flow through to the Australian dollar in Thursday trading for Europe and the US. But it looks like it’s catching up now.

The rally has really been remarkable, and it makes interesting context for the Reserve Bank of Australia when it considers its interest rate decision next week. Most economists expect the Bank to keep the official cash rate at 1.75%, but a 25-basis-point cut is expected in August.

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