The Aussie saw early week strength that it couldn’t hold on to as risk aversion sentiment dominated once again. Traders were basically in fear mode most of the week thanks to the severe coronavirus pandemic, and possibly on true negative Aussie sentiment as economic updates from Australia disappoints.
Australian Headlines and Economic data
- Treasurer Josh Frydenberg details JobKeeper scheme of $1,500 per fortnight for businesses to pay employees
- Australia expands lockdown measures to combat coronavirus spread
- Australia’s consumer confidence lowest since 1970s
- Australia Private sector credit +0.4% in Feb., inline with January growth.
- The Aussie was moving to the upside through the Tuesday Asian session, likely a reaction to the better-than-expected Chinese PMI updates (China says manufacturing activity expanded in March, defying expectations of a contraction). The move was eventually reversed by the U.S. trading session, likely sparked by the rising uncertainty how bad the COVID-19 pandemic will be to send risk assets lower.
- Australia’s building approvals rise in February
- Stockpiling boosts Australia’s manufacturing in March
- RBA minutes: “very material” contraction likely
- RBA Commodity prices index: -3.7% m/m in SDR terms vs. +1.0% in Feb
- Risk sentiment continues negative on the session to put pressure on the Aussie, likely sparked by U.S. President Trump’s change of sentiment on the coronavirus, warning of ‘very painful two weeks’ ahead.
- Australian NAB quarterly business confidence index down from -2 to -11
- Australia PM Morrison announces $973 million package for childcare sector
- AIG’s construction index falls to 2013 lows
- Panic buying gives Australia’s retail spending a boost in February
- Australian PM Scott Morrison Tells Visitors To ‘Go Home’ Amid Coronavirus Crisis
- The Aussie saw one last push lower against the majors during the Friday session, likely on another round of net negative updates from Australia combined with the ongoing net negative risk sentiment, possibly on more doubts of the Saudi-Russia oil deal, the economic damage being done from the global social lockdown, and/or continued coronavirus fears as cases and deaths continue to rise at a frightening pace (Coronavirus cases top 1 million globally)