After the Australian dollar broke the 78 US cents mark on Wednesday, it rose another 0.2% to 78.17 US cents on Thursday, the highest since April 2018. Since the Australian dollar probed as low as 55.11 US cents in March, it has risen for 9 consecutive months and has risen by as much as 41.8% so far.
The main driving force for the continuous rise of the Australian dollar came from commodities. In the past few months, commodity prices have continued to rise sharply. If prices can remain high, the Australian dollar is expected to rise further.
However, the rise of the Australian dollar may hinder the recovery of Australia’s domestic economy because the strong Australian dollar will reduce the net income from rising commodity prices, and overseas commodities will also be more attractive to domestic buyers in Australia, which is obviously not conducive to the recovery of the Australian economy .
https://www.afr.com/markets/currencies/australian-dollar-to-surge-as-high-as-us85-20201218-p56om8