The Australian Dollar saw another week of volatile movement, fuelled by fluctuating market sentiment and risk appetite.
While the release of the Reserve Bank of Australia’s (RBA) December meeting minutes put some pressure on the Aussie dollar, this failed to keep the currency on the back foot.
Signs of resilience within the Chinese economy and hopes of a greater rollout of Covid-19 vaccines to come both helped to lift market sentiment and the Australian Dollar.
The AUD/USD exchange rate rose to its highest level since March 2018 as the Federal Reserve maintained its commitment to keeping monetary policy loose for some time to come.
With investors still hopeful of an imminent breakthrough in UK-EU trade talks and the US stimulus package, the appeal of the AUD continued to improve heading into the weekend.