The Australian dollar is expected to keep rising as long as China's hunger for steel remains insatiable and the US struggles to control its coronavirus outbreak. Although there are big differences in their forecasts, the common thread is their expectation of a much stronger Australian dollar. But it is not as positive for Australian exporters, who prefer a lower currency to boost foreign demand for their goods. Nor would the predictions be greeted enthusiastically by the nation's tourism industry (in pre-COVID times) — which relies on a weaker dollar to attract hordes of overseas tourists. "As the Aussie dollar goes up, it normally would encourage Australians to go on an overseas holiday.

Source: The Standard December 23, 2020 08:48 UTC