The Australian dollar takes the top spot this week as traders focused more on the improving economic updates over the pandemic worsening in Australia.
Australian Headlines and Economic data
Broad weakness for the Aussie during the London session despite the early positive AU updates, but traders were able to turn the currency back on the positive path, likely due to rising risk-on sentiment (broad U.S. equity strength (once again lead by the tech sector) and/or positive coronavirus news (Eli Lilly starts late-stage study of coronavirus drug in nursing homes).
After the Aussie’s Asia session rally (which may have also been supported by positive economic updates from New Zealand and China), the currency weakened during the U.S. trading session, possibly on risk-off vibes sparked by the much weaker-than-expected U.S. jobs read from ADP.
No major catalysts from Australia on Thursday, but we did see a pop higher in the Aussie against the majors on the session, possibly on another round of risk-on sentiment after the better-than-expected U.S. unemployment claims? Or hopes of a new U.S. stimulus deal before the end of the week?
On top of the disappointing updates from Australia above to likely sink the Aussie on the session, we saw a round of risk aversion sentiment to likely contribute to the Australian dollar’s move lower. This may have stemmed from rising geopolitical tensions between the U.S. and China, and/or the eventual failure of the U.S. government to come up with a stimulus package before the end of the week.