Dollar Faces Upside Risk, CBA's Haddad Says

The video discusses the current strength of the US dollar, driven by monetary policy divergence and trade tensions. The Fed's interest rate hikes contrast with other central banks' cautious approaches, supporting the dollar. Trade tensions and emerging market financial stress pose risks to global growth, potentially benefiting the dollar. The Bank of England's rate decisions are influenced by Brexit uncertainty, while the Australian dollar faces challenges from shifting global economic conditions.

Discuss the potential risks associated with the Bank of England's rate hike cycle.

What factors have contributed to the Australian dollar's performance according to the text?