Australian dollar up, slip likely Finance Rose Powell The Australian dollar's week of gains has beaten gloomy expectations, but its recovery could be short-lived and even possibly over before the week is out. 
The dollar has been falling for months alongside plunging commodity prices and due to investor concerns that the US Federal Reserve will raise rates for the first time in more than a decade.
The local currency plunged from US94¢ in   January to just below US70¢ and most banks are forecasting further falls to US68¢ by the end of 2015 and US65¢ within 18 months.
Yet over the past week it has managed to climb almost 4¢ to sit at US73.3¢ in late trade on Monday, after rallying commodities and disappointing data out of the United States pushed back market expectations for a rate hike to mid-2016.
"It is likely to stay up in the short term. Commodity markets saw an aggressive shift in sentiment last week after Chinese markets reopened resilient after a week-long holiday," Westpac chief currency strategist Robert Rennie said.
"Despite this, I would caution about getting too optimistic."