After a rosy start to the week on positive risk sentiment, AUD takes a turn lower as global risk sentiment turned negative. Focus shifted quickly from economies reopening to a return of China tariffs and weak economic data.
Australian Headlines and Economic data
No Australian catalysts to attribute to the opening strength on Monday, so its likely the Aussie was riding higher with the Kiwi when New Zealand claimed ‘elimination’ of coronavirus with new cases in single digits.
Along with the positive economic updates from Australia, it’s likely the Aussie was supported higher by broad global risk sentiment as more countries were looking at re-opening their economies.
AUD turns lower on the session, likely on rising negative risk sentiment starting in the London session on negative economic updates from Europe (GDP down by 3.8% in the euro area and by 3.5% in the EU), negative outlook from the ECB monetary policy statement, and possibly on some negative commentary from two of the largest companies in the world (Amazon and Apple) taking down U.S. equities through Friday.
AUD falls during the Friday session as global risk sentiment continues to be negative, likely on boosted headlines that the U.S. is looking to take action against China like new tariffs.