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The Australian dollar tops all major currencies this week, mostly riding global risk sentiment flows as the Australian economic calendar and headlines were mostly bare.

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

Australia Headlines and Economic data

Tuesday:

With no apparent drivers from Australia on the session, the round of Aussie strength was likely also on broad positive risk sentiment (continued  recovery hopes and vaccine development news)

Wednesday:

Australia’s construction fell again in March quarter

Australia eyes New Zealand travel ‘bubble’ as cases fall

The broad, sudden drop in the Aussie against the majors during the U.S. trading session was a bit of a mystery.

Likely, it was on a shift in risk sentiment, this time possibly on geopolitical tensions rising (e.g., U.S. weighs sanctions on Chinese officials, firms over Hong Kong, China approves controversial national security bill for Hong Kong).

Thursday:

Australia’s Q1 private capital expenditure down by 1.6% vs. projected 2.6% slump

RBA’s Philip Lowe says rates won’t rise ‘for some years’ but JobKeeper may need to be extended

A bit of choppy price action during the Asia and London sessions, but we did see some directional bias during the U.S. session as the Aussie rallied a bit.

This was was likely due to the continued positive global risk sentiment, which may have stemmed from this session from Europe as the bigger-than-expected recovery fund proposal may be brightening up the outlook in Europe.

Friday:

Australia Private sector credit +0.0% m/m in April