Mixed week for the Aussie, first getting a steady beatdown on global geopolitical fears before a surprising positive Australia jobs update and a reversal in risk sentiment helped some Aussie pairs back into the green.
Australian Headlines and Economic data
- China September iron ore imports surge to 20-month high on firm demand
- Weak economic data from China (imports and exports fell more than expected in September) and rising doubts on the recent ‘phase 1’ trade agreement between the U.S. and China (China says it wants more talks before signing trade deal with Trump) had traders in a risk-off mood to start the week. We saw the Aussie generally weak on Monday, managing to only outperform the other comdolls on the session.
- Minutes of the Monetary Policy Meeting of the Reserve Bank Board
- The RBA’s last two rate cuts didn’t even touch the sides of the economy – but it’s going to keep on slashing them regardless
- Chances of November RBA cut less likely after minutes
- Despite odds of a rate cut falling for November from the RBA, the Aussie broadly fell on the session, managing to only get a small boost from the big news that Brexit deal between the U.K. and EU was close to being drafted.
- Australia Westpac-MI leading index plunges but the Aussie was able to bottom out and reverse its fortunes on the session, likely on the continued positive risk sentiment stemming from the improving Brexit story (still a possibility of a Brexit extension if the U.K. Parliament cannot agree on the new deal this weekend)
- Sizeable downturn’: RBA warns housing will weigh on economy for another year
- Australia’s central bank posts 18% rise in 2018/19 profit on currency fall
- Big pop for the Aussie against the majors on the session after we see the Australia unemployment rate dip to 5.2% in the latest update and the NAB Quarterly Business Confidence improves. We also got positive rhetoric on the U.S.-China trade negotiation front after China says it hopes to reach phased trade pact with U.S. as soon as possible.