It goes without saying that the last six months or so have been decidedly troublesome for practically every aspect of life as we know it and every corresponding industry. Even, as it turns out, the foreign exchange market. The foreign exchange market is no stranger to its own ebbs and flows. In fact, this is a market that has functions and thrives on the varied basis that its currencies are going to continually draw it into a state of certain instability.
The position of the Australian dollar has been particularly unstable in recent months. This is especially true over the last week. The Australian dollar has attempted to retrace its decline as the federal open market committee allowed it to bounce back from a low last week. As the RBA continues to focus on attempting to allow the Australian dollar to maintain its footing at least for now while it continues to find ways for the dollar to strengthen in the coming months and even the coming years, the Australian dollar has been tipped against the US dollar and the Chinese yen with un characteristically low expectations and results.
Of course, a part of this is down to the fact that the entire world is struggling with the coronavirus pandemic that has been breaking havoc around the globe for the longest time now. As a direct result, many currencies including the Australian dollar have had to re-evaluate their footing and have struggled throughout the process and in the aftermath of the process. The Australian dollar this week is now finally finding its feet again after an unstable several months, however if recent history has taught us anything, it is that the foreign exchange market is never a certain thing - and neither is the strong (or the weak) position of any currency, including of course the Australian dollar.
The Australian dollar has been having a particularly challenging time on the foreign exchange market in recent weeks. From this point onwards, we hope that we are going to be seeing the Australian dollar continue to rise back up towards his usual standards prior to the pandemic. And while we cannot be sure which way this is going to go, what we can be sure of is that the Australian dollar has been finding itself in a position of definitive instability recently and hopefully this is just the start of it finding its footing and establishing its strong position in the foreign exchange market that spans the globe once again.
The Australian dollar currently is a representation of the Australian economy; unstable and uncertain of where the future is going to take it next. Ideally, the Australian dollar is only going to continue to find its footing more as time goes on into this next week and beyond. Ultimately, only time will tell.
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