AUD Weekly Review (July 15 – 19)

Positive economic updates from both China and Australia quietly lift the Australian dollar to be one of the top performing major currencies of the week.

Australia Headlines and Economic data

Monday:

• China June industrial output up 6.3% year-on-year, beats forecasts, retail sales up 9.8% – Without direct catalysts from Australia, the pop higher in the Aussie against the majors is likely sparked by positive news from one of its largest trading partners in China

Tuesday:

• RBA meeting minutes: Australia’s central bank ready to cut rates again ‘if needed’

Wednesday:

• The six month annualized growth rate in the Westpac–Melbourne Institute Leading Index, rose from –0.47% in May to –0.02% in June

Thursday:

• Australia jobless rate stuck at 5.2%, signals more work for RBA –
• NAB business confidence survey: Conditions ease further, while confidence increases
• The combination of the unemployment rate not rising above 5.2% and the better-than-expected NAB confidence survey was the catalysts for the bullish reaction and overall broad move higher in Aussie pairs throughout the Thursday session.