Australian Dollar: From Top Performer to Bottom of the Pack

Since the beginning of this year, the Australian dollar was once the strongest currency, but it has recently fallen consecutively from 0.7 to 0.6830 due to the situation in the Middle East and the poor performance of global stock markets, marking its worst monthly performance in 2024. The fundamental advantages of the Australian dollar's strength have been weakened, and market confidence in the Reserve Bank of Australia's interest rate hike policy has declined. In the short term, AUDUSD may fluctuate within the 0.68-0.7 range. However, in the medium to long term, if the tensions between the US, Israel, and Iran tend to subside, the Australian dollar is expected to outperform other non-US currencies