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.
Australia Headlines and Economic data
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.
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.
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.
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.
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.