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The Australian dollar takes the top spot this week, rallying after an early week knock down. It’s likely that improving risk sentiment after the oil crash then bounce was a contributing factor, and arguably Australia’s relatively strong performance against the coronavirus may have prompted traders to take more Aussie risk as well.

Overlay of AUD Pairs: 1-Hour Forex Chart
Overlay of AUD Pairs: 1-Hour Forex Chart
AUD Weekly Performance from MarketMilk
AUD Weekly Performance from MarketMilk

Australian Headlines and Economic data

Monday:

Australia shouldn’t worry about huge government debt, RBA’s Lowe says

Global risk aversion sentiment dominates the markets, sparked by the historic crash in oil, which likely contributed to the Aussie’s fall on Monday & Tuesday against the majors.

Tuesday:

Australia loses 6% of jobs to coronavirus crisis: Official data

RBA minutes hint loose policies to remain in the foreseeable future

RBA’s Lowe: Australia’s economy to shrink 10% in first half of 2020

Wednesday:

Australia’s March retail sales jump 8.2% on account of panic buying – This event correlates with the Aussie bottoming out against the majors on Wednesday, so it may have been the catalyst for the rally.

It’s also arguable that risk sentiment played a role in Aussie’s rally as well given its positive turn as oil bounced higher from record low levels.

Thursday:

Australia’s services sector hit “a lot harder” than manufacturing in April

Australia’s Morrison hints at easing COVID-related restrictions in three weeks

Australia to Keep Borders Shut For At Least Three Months

Friday:

Australia is steamrolling the curve: Nation records just 17 cases in one day – It’s arguable that Australia’s early actions to combat the virus may lead to an easing of the lock down sooner than other countries, and this may have been a contributing factor to the Aussie’s strong performance this week.