Despite a lack of major, positive catalysts from Australia, the Aussie was able to beat nearly all challengers this week.
This was likely with the help of broad risk sentiment leaning positive and on counter currency flows.
Australian Headlines and Economic data
Monday:
No news or headlines from Australia at the start of the week, so it’s likely the broad gains in AUD were off of positive risk sentiment. The catalysts for this bias was likely the news of the U.S. Food and Drug Administration issuing an emergency use authorization of convalescent plasma for hospitalized Covid-19 patients.
Tuesday:
Payroll jobs fell by 1.0% over the month to 8 August – Australian Bureau of Statistics
ANZ-Roy Morgan Australian Weekly Consumer confidence: 92.7 vs. 88.6 previous
Aussie data was mixed for the session, so it’s likely the broad move higher was once again influenced by positive risk sentiment after news of the U.S. and China reaffirming the Phase 1 trade deal.
Wednesday:
Australia Construction Work Done Eases 0.7% In June Quarter
Despite the negative headlines above, the rally was a gainer on the session, possibly on positive COVID-19 vaccine headlines (Cambridge university aims for autumn trials of coronavirus vaccine after UK funding).
Thursday:
Australian Private Capital Expenditure (capex) for Q2 headline -5.9%
The Aussie continued its rally during the Thursday session, which accelerated during the U.S. trading session as traders reacted in favor of risk assets to the announced new approach to inflation by Fed Chair Jerome Powell during the Jackson Hole Economic Symposium.
Friday:
China Blocks Imports From Australian Beef Producer
Victoria records 113 new cases and 12 deaths as NSW reports 13 cases
Thursday’s Fed inspired risk-on vibes overflowed into Friday to lift the Aussie further, with additional help from the U.S. markets as equities rallied (Dow closes more than 150 points higher to erase its 2020 losses) to help other risk assets close higher into the weekend.
