Counter currency drivers and risk sentiment made for a mostly choppy week for the Aussie, but ultimately, it was a net losing week against the majors on news of rising coronavirus cases and Australia slowly locking back down.
Australian Headlines and Economic data
The Aussie opened up the week relatively strong, which as was likely due to the improving Aussie numbers above and broad positive risk sentiment. The positive global vibes likely stemmed from a very bullish start to the week for the Chinese equity market.
The Aussie turned lower during the Asia session ahead of the latest monetary policy decision from the Reserve Bank of Australia. RBA kept interest rates on hold at 0.25% as expected, so it’s likely the net move lower for the Tuesday session was more from news that Australia would be locking down again and another weak Australia Services update rather than the RBA statement.
The Aussie pushed lower against the majors during the U.S. session, likely on rising risk aversion sentiment amid refreshed concerns of how the coronavirus will impact the economy.
Thursday’s negative risk sentiment carried into the Friday Asia session as there were no major catalysts or new headlines to shift biases. This environment was likely the reason why we saw further declines in the Aussie against the majors through the Asia and London trading sessions.
Broad risk sentiment flipped back to positive to bounce the Aussie a bit higher on news during the U.S. session from Gilead that remdesivir coronavirus treatment reduces risk of death.