Aussie Dollar Breaches 80 U.S. Cents to Reach Three-Year High

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Australia’s dollar broke through 80 U.S. cents to reach its highest level in three years, helped by rising commodity prices and an improving global growth outlook.

The risk-sensitive currency rose as much as 0.5% to 80.06 U.S. cents, the highest since February 2018. It has strengthened about 21% against the greenback in the past year, the most among Group-of-10 peers as commodity prices soared to an eight-year high and China’s economy continues to rebound.

“Growth optimism, vaccine rollouts and rising commodity prices are all pushing the Aussie higher,” said Michael McCarthy, chief market strategist at CMC Markets Plc, who sees the currency climbing to as high as 84 U.S. cents in the short term. “It’s a commodity-linked currency and there’s no doubt with demand rising that there’s room for more gains ahead.”

Aussie Dollar Breaches 80 U.S. Cents to Reach Three-Year High

The Aussie traded 0.4% higher at 80.02 U.S. cents as of 9:21 a.m. in London

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