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The Australian dollar was able to bounce back from a weak start as the RBA paused on rate cutting for now. Also, Australian data came in more positive than negative to put Aussie bulls in the driver’s seat into the weekend.

Australian Headlines and Economic data
Monday:
- Australia’s manufacturing sector finished off the second quarter on a stronger note, rising to 52.0 in June vs. 51.0 in May according to Commonwealth Bank. This contradicts the Australia Industry Group’s manufacturing index read of 49.4 in June.
- The Aussie’s broad weakness may stem from the above mixed manufacturing numbers from Australian, and also arguably the less than stellar update from China’s manufacturing sector. The latest Caixin manufacturing PMI update showed the U.S.-China trade dispute continued to have a negative effect, with the overall conditions falling from 50.2 in May to the contractionary level of 49.4 in June.
Tuesday:
- RBA cuts interest rates to new low of 1pc amid slowing economy, prompting big four banks to respond
- RBA’s Lowe Signals Rate Pause While Pledging Readiness to Act – this development was likely the initial catalyst for Aussie traders to reverse into buy mode, or at least take profits from Aussie shorts.
Wednesday:
- Australian building approvals increased by 0.7% vs. a revised -3.4% in the previous month
- Australia Trade Surplus Rockets to Record on Resurgent Iron Ore
- The AIG Australian Performance of Services Index fell by 0.3 points to 52.2 points in June 2019 (seasonally adjusted)
Thursday:
- Australian retail sales rise in May
- Australia Job vacancies have decreased for the first time in three years
- Australia senate backs $110 billion tax cut plan to boost economy
Friday:
- The AIG Construction Index saw an increase of 2.6 points from May in June to 43.0 points
- Stocks fall from record highs after strong jobs report dampens hope of a Fed rate cut – this update from the U.S. is likely the reason for broad drop in Aussie pairs as the strong U.S. employment reduces the odds of more stimulative action from the Fed, broadly bringing global risk sentiment lower on the session.