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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.

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

Australian Headlines and Economic data

Monday:

Australia ANZ job advertisements survey for June: +42.0% m/m

The Melbourne Institute’s headline inflation gauge rose by 0.6% in June

Australia closes state border for first time in 100 years after COVID-19 spike

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.

Tuesday:

Australia deploys police and military to enforce border closure

Australia’s state of Victoria announced six-week lockdown for Melbourne

Australian Industry Group Performance of Services Index ticked lower to 31.5 vs. 31.6 previous

Australia’s second largest city heads back into coronavirus lockdown

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.

Wednesday:

Melbourne returns to lockdown as cases surge

Australia’s Treasurer signals ‘income support’ to avoid September cliff

Thursday:

More state borders being closed in Australia on resurgence of COVID-19 cases

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.

Friday:

Australia to cut number of citizens coming home as virus cases rise – PM

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.