Choppy week for Aussie pairs, but early weakness in reaction to the dovish RBA events were wiped away by strong selling in the U.S. dollar.
Australian Headlines and Economic data
- Australia’s conservative party retains power in shocking election result – Aussie pairs gapped higher as it was a surprise that the incumbent party would hold power, contrary to polls results before the vote.
- Soggy Australia House Market Boosted as Lending Rules Eased
- Cut to cash rate likely ‘appropriate’: RBA Meeting Minutes
- Australia to Consider Cutting Rates Next Month, Lowe Says – broad fall in Aussie pairs after a very dovish speech from RBA Governor Lowe, which apparently traders took as a guaranteed rate cut in June.
- The Conference Board Leading Economic Index(LEI) for Australia increased 0.3 percent in March 2019 to 107.2
- Australia’s economic slowdown could be entrenched, according to leading indicators
- Australian construction woes deepen as work continues to dry up
- Australia flash composite PMI rises for the first time in four months to 52.2 from 50.0 in April
- Flash U.S. Manufacturing PMI at 50.6 (52.6 in April). 116-month low – the U.S. dollar sold off strongly in reaction to this data, which greatly benefited the other major currencies, which is likely the reason why we saw some Aussie pairs and gold strongly rise after the event.
- U.S. Durable-goods orders slump in April as business investment almost dries up – Once again, weak U.S. data lead to a sell off in the Greenback, benefiting the other major currencies during the Friday U.S. trading session. Without any other direct catalysts, this is likely the reason for the broad rally in Aussie pairs.