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The Australian dollar nearly takes the top spot despite a relatively quiet week of catalysts from Australia. It was likely a mixed of comments from RBA Governor Lowe and early week positive risk sentiment that had traders sticking with the Aussie all the way through Friday.

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

Monday:

Australian economy outperforming, but coronavirus ‘shadow’ could last years, warns RBA’s Lowe – in his comments, Lowe wasn’t concerned with the Australian dollar’s value, hinting that the RBA isn’t likely to do anything to push its value lower for now.

Low rates for years as economy meanders: Lowe

Australian officials warn against travel to new coronavirus hotspots

On top of the somewhat relatively bullish comment on AUD from RBA Governor Lowe, the Aussie may have had additional support for its rally during the U.S. session as risk sentiment moved more positive thanks to bullish moves from US tech stocks.

Tuesday:

Australia’s flash manufacturing PMI up from 44.0 to 49.8

Australia’s flash services PMI up from 26.9 to 53.2

We saw Asia session volatility thanks to comments from Peter Navarro that the China deal was “over”, comments that he later walked backed.

During the U.S. session, we somewhat of a broad move higher the Aussie (driven again by U.S. tech sector strength), which was soon followed by a pullback in the afternoon session, possibly profit taking.

Wednesday:

The Aussie falls broadly on the session, possibly a sympathy move with its close trading partner, the New Zealand dollar, after the latest RBNZ monetary policy statement (RBNZ prepared to “provide additional stimulus as necessary”).  It’s also likely that the weakness came as traders ran for safety on a news flow of rising covid cases, negative global economic outlook, and geopolitical tensions (U.S. is considering $3.1 billion in new tariffs on products from France, Germany, Spain and the UK) came out through the day.

Thursday:

Australia posts biggest one-day rise in coronavirus cases in two months

Friday:

There were no major catalysts from Australia during the Friday session, but we saw a broad move lower in the Aussie during the U.S. trading session. This was probably on the continued focus and fears of rising coronavirus cases and states moving back into lockdown mode.