The Aussie dollar beats all challengers this week on both positive global risk sentiment and a net positive run of Australian updates to fend of rising rate cut expectations.
Australian Headlines and Economic data
- With a lack of catalysts from Australia, it’s likely the positive start to the week for the Aussie was off of positive risk sentiment stemming from trade optimism and expectations of a Fed rate cut to send risk assets higher (including the Aussie) during the U.S. trading session.
- RBA may ease further but negative rates unlikely, Lowe says – this event seems to correlate with a small move higher for Aussie pairs on the session.
- Australia CPI comes in as expected at +0.5% this quarter, compared to a rise of 0.6% in the June 2019 quarter – while a tick lower than the previous quarterly read of +0.6%, it wasn’t likely enough to raise expectations for the RBA to cut rates at the next meeting; this was probably the reason we saw broad support for the Aussie after the event.
- Australian New home sales bounced back in September, up +5.7%
- Australia private sector credit in Australia rose by 0.2% m/m in September 2019
- Australia building approvals was up 7.6% in September m/m; -19.0% y/y
- Broad move lower in Aussie pairs during the London trading session, most likely on rising global aversion sentiment after news there was doubt from China that a long-term trade deal could be possible with Trump.