Aussie sees a sea of green this week thanks to traders mostly feeling good on risk early in the week on stimulus hopes and positive vaccine news.
This was enough to overcome a round of weak economic updates from Australia and threats from China on trade.
Australian Headlines and Economic data
Global risk sentiment started the week in the “on” position to help lift the Aussie early, thanks to several catalysts: Moderna reports positive data on early-stage coronavirus vaccine trial, weekend comments from Fed Chair Powell to reiterate unlimited stimulus support, positive signs of the global economy returning to pre-covid levels.
Australia ‘disappointed’ by China barley tariffs
Australia faces ‘unprecedented’ economic hit from coronavirus: RBA minutes
Australia weekly consumer confidence rises to 92.3 vs. 90.3 previous
China Considers More Economic Pain for Australia on Virus Spat
Another positive session for the Aussie despite the net negative Australian news, thanks to Monday’s driving themes, but we did see a little in the Aussie as risk sentiment shifted negative during the U.S. session on Moderna vaccine news and more U.S.-China tensions (US could delist Chinese companies).
Australia to relax some domestic travel restrictions
Australia’s MI leading index down 1.5% after earlier 0.7% dip
Conference Board Australian Leading Economic Index fell 0.3% in March 2020
Australian retail sales dive a record 17.9% in April: ABS preliminary estimate
Australia’s manufacturing PMI dips further from 44.1 to 42.8 in April
Lowe: RBA prepared to scale up purchases again if necessary
Australia Treasury secretary says real number is closer to 2M – the highest since the Great Depression
Choppy trade on Thursday for the Aussie. After some selling during the Asian session due to the headlines above, the Aussie was able to recover during the London session a bit before another round of selling during the U.S. session. Risk sentiment moved negative on more U.S.-China tensions (White House report criticizes China’s economic policies, human rights violations) and weak U.S. economic updates (U.S. jobless claims total 2.4M)
Fitch cuts Australia’s sovereign outlook to negative, affirms ‘AAA’ rating
The Aussie drifted lower during the Asia session as risk sentiment continued in negative mode, once again U.S.-China tensions (China Will Fight Back if U.S. Intervenes in Hong Kong, Beijing Warns)