Analysts at BlackRock, the world's largest asset manager that’s in charge of about $3.65 trillion in assets in its stock, bond and hedge funds, think that after Australian currency has gained 28% versus US dollar during the past year that’s the most than other greenback’s major counterparts it doesn’t have much potential to keep appreciating.

The specialists point out that to buy Aussie one has to be very optimistic about global economy that’s rather difficult in the current circumstances.

The pair AUD/USD used to be supported by the increasing interest rate differential between Australia and other developed nations and high demand from China for the nation’s commodities. However, Chinese manufacturing growth fell to the minimum since February 2009, while the pace of services industries’ expansion declined to lowest level in 4 months. In addition, according to the data released today, Australian retail sales declined today.

Aussie dropped from $1.0789 on July 1, the maximum since May 11, to trade in the $1.0720 area.

Economists surveyed by Bloomberg News expect Australian currency to weaken to $1.04 by the end of 2011.


Chart. H4 AUD/USD