The Australian dollar has reached its highest level since February 2019 as the US dollar weakens.

The Aussie dollar reached its low in mid-March, where it was trading at fifty five point one one US cents. In June, it pushed through the seventy US cent barrier, and peaked at seventy two point one zero US cents at the end of June, before dropping slightly over the weekend to seventy one point five three US cents as a State of Disaster was declared in Victoria.

The Australian dollar’s rally has surprised economists, most of whom didn’t predict a recovery until the end of the year, or even until 2021.

A drop in confidence in the US dollar is a major contributing factor to this rally. The US dollar index, which compares the US dollar against seven other currencies, dropped 9.2 percent a fortnight ago.

Another factor is stronger commodity prices, particularly gold, which reached a record high of 1 thousand nine hundred and 81 US dollars per ounce.

And the last factor is the RBA’s reluctance to expand quantitative easing policies that were implemented at the start of the outbreak. As a result, the level of ‘money printing’ conducted by the RBA is significantly less than the US Federal Reserve, the European Central Bank, the Bank of England, and the Bank of Japan.