Not much love for the Aussie this week thanks to geopolitical & health issues souring traders’ moods on risk assets, as well as on arguably net negative economic updates from Australia.
Australian Headlines and Economic data
Commonwealth Bank chief executive Matt Comyn sees nascent signs of post-pandemic recovery
Increased risk aversion on rising US-China tensions and fears of a new infection wave was likely the catalyst for the Kiwi’s move lower against the majors during the US session.
Australian NAB business confidence index up from -65 to -46
China retaliates with import ban on four Australian meat companies
More fears of a second coronavirus wave sparked risk-off sentiment, adding to Aussie pressure during the Asia session, but hopes of an economic recovery as countries end lockdown restrictions turn traders to positive sentiment during London trading session. Risk sentiment swings back to negative to push the Aussie back down during the US session on the pandemic outlook and more headlines of rising US-China tensions.
Westpac: AU consumer sentiment makes impressive recovery in May
Australia’s wage growth sluggish before virus hit
Risk-on sentiment during London session on lockdown easing had the Aussie moving higher against the major currencies, but it was a quick flip to risk-off sentiment during Fed Chair Powell’s warning of extended economic weakness.
Australian economy lost 594.3K jobs in April vs. expected 575K drop
Australia MI inflation expectations down from 4.6% to 3.4%
Risk-off sentiment picked up during the Friday session to sink the Aussie after its Thursday bounce, likely on a combination of weak economic updates from China, Germany, and the U.S., as well as on negative vibes on U.S.-China relations. (Trump administration moves to cut Huawei off from global chip suppliers)
Roz has been engaged in the financial markets since 2017, specializing in Foreign Exchange, Before joining to FOREX IN WORLD she start to learn forex trading related information.
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