After an up and down week, the Australian dollar closes as a net winner on Friday. Despite the historically weak Australian sentiment data, Aussie bulls were able to ride the surprise positive employment update and improving risk sentiment to be mostly green into the weekend.
Australia Headlines and Economic data
Monday:
Broad move higher in the Aussie against the majors during the U.S. trading session. There doesn’t seem to be a catalyst for the broad move, but it’s possibly a combination of weak U.S. dollar sentiment and rising gold prices that may have contributed to the Aussies strength on the session.
Tuesday:
Australia’s NAB business confidence index sank from -2 to -66
A little boost higher for the Aussie during the Asia trading session despite the weak AU business confidence update.
The gains may have been on positive global risk sentiment after China printed better-than-expected economic updates (-6.6% March exports vs. a -14% forecast)
Wednesday:
Australia sells A$13B of bonds in biggest sale on record
Australian consumer sentiment drops most in 47-year history – this data was the likely catalyst for the Aussie’s turn lower on the session, in combination with the fall in oil prices and negative outlook updates on the global economy.
Thursday:
Australia’s MI inflation expectations up from 4.0% to 4.1%
Australia to retain coronavirus curbs for at least another four weeks
Friday:
No updates from Australia to contribute to the Aussie’s bullish turn during the very early Asia trading session, so it’s likely on the bullish shift in risk sentiment after the U.S. outlines a plan to re-open the economy and news of a promising coronavirus therapy (a Gilead Sciences drug showed some effectiveness in treating the coronavirus)
