Australian Dollar Up Against the USD due to Hurricanes

The national currency of Australia is predicted to maintain its stance near the two-year highs, as the American dollar is expected to be under pressure due to economic downfall assessed by investors in line with the destructive hurricane that hit the shores of Florida.

On Friday, the Aussie dollar was able to reach its highest level since May 2015 while investors are preparing for further impact by Hurricane Irma as the forecast says, it will slam the Florida Keys along with some flooding in Florida’s Gulf Coast.

Lloyd’s of London fears for the possible insurance losses worth $US 200 billion ($248.22bn) as tropical cyclones brush off through the coasts of the United States and the Caribbean.

The reversal in the residential construction activity seems evident, as Westpac chief economist Bill Evans worries about the declining growth outlook based on the Reserve Bank’s report regarding monetary policy previously.

The bank further mentioned the increasing charges of stamp duty from foreign investors, as well as funding restrictions and Chinese government restraints that mainly influence future developments, particularly on international companies.

On Thursday, job statistics for this month will provide a break point for markets and the NAB’s economics team anticipates for a strong and steady month of the jobless rate at 5.6 percent. While tomorrow is scheduled for the publication of the bank’s Business Survey which would likely continue to show solid levels of business confidence. Moreover, the  Westpac consumer confidence index will be issued on Wednesday and expected to remain weak. It should be watched carefully because of the impact cause towards the retail-exposed stocks, as the dollar seems trading actively.

The greenbacks were able to lose its gains on the back of touching its two-year high at US81.25c last Friday, however, it closed over the critical level of  US80c.