We saw mostly negative economic updates and commentary from Australia this week, but the Australia dollar traded mostly mixed through it all. Counter currency flows and broad risk sentiment were likely drivers for the mixed performance.
Australian Headlines and Economic data
RBA Assistant Governor Kent gave a speech that covered the global financial conditions and the RBA’s actions during the initial market panic reaction to the COVID-19 pandemic. Overall, the RBA’s operations to support the economy with low borrowing costs and an ample supply of credit seems to have worked well.
After a negative turn during the Asia session correlating with the terrible Australian updates above, the Aussie dollar bottoms out during the U.S. session and turns a corner heading into the Friday session. This is likely sparked by U.S. dollar weakness and possibly by the U.S. tech sector rally ahead of big tech earnings.