Stephen Koukoulas Australian Quotations

We're short-term fans of the Australian dollar. The global demand for commodities is incredibly strong because of the global economy, which is doing very well.

The news should provide support for the Australian dollar with a hint that the trade balance will continue to narrow.

The Australian dollar should be doing better in the short term because the rate differential is still supportive.

The unemployment rate is likely to break below 5 percent in the months ahead. It will escalate the pressure on the Reserve Bank to raise interest rates, which in turn will be a shot in the arm for the Australian dollar.

The case for a rate hike, while not totally compelling yet, is gaining a bit of momentum with these sort of numbers. On an interest-rate-differential and growth story, it should put the Australian dollar back in focus and see it move higher.

The market hasn't been paying enough attention to inflation risks as it should. The prospect of an interest-rate move higher in the months ahead will mean the Australian dollar will find some friends.