AUD/USD has been a strong performer in the currency markets, returning just under 30% since its March lows. We talked about how the Australian dollar was poised for a rally on a market recovery earlier this year.

The market has recovered, and the Australian dollar has recovered with it. This was due to the Australian dollar being mainly a “commodity currency,” with manufacturing worldwide slowly starting to pick up, specifically in China. Erik Nelson from Wells Fargo stated that “If you consider some of the fundamentals in Australia, you can justify the valuation of the Australian dollar at current levels” and that Australia is “very well positioned right now” about its exports to China.

However, the AUD/USD has fallen over 3% in the past couple of days. This has been on a multitude of factors, the US Dollar strengthening on Donald Trump’s recovery, recent weakness in the oil prices, and the tremulous Coronavirus situation in Australia have pushed the Aussie lower.