Promise of Aussie dollar lift as China loosens covid policy

The days of a low Australian dollar might soon be over. 

China recently announced it will be relaxing its strict covid-zero policy and that could see our dollar move as part of that effect as the economy begins to revitalise.

For those late to the news, for the last two years China’s pandemic policy has been one of the strictest in the world, with several cities coming to a complete standstill. Businesses relying on Chinese exports were directly impacted by the resulting economic strain and passed those financial difficulties onto consumers worldwide. That typically meant things got expensive to produce, shipping times took longer, and newer products took longer to hit the market. 

But what does this have to do with the Australian dollar? 

Well, OFX, a money transfer provider, believes that this shift in Chinese policy could allow the Australian dollar to consolidate gains and potentially see it reach 0.70 USD again - up from around 0.67.

That means the Australian dollar will potentially get stronger, which is good for Aussies looking to travel, buy products abroad or send money overseas. 

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