After a positive start to the week, the Aussie dollar was hit with a steady stream of disappointing economic updates from Australia to close out Friday as the worst performer among the major currencies.
Australian Headlines and Economic data
Monday:
Australia Q2 inventories, wages decline amid first recession in 30 years
Australia Private Sector Credit in July: -0.1% m/m vs. -0.2% m/m in June.
Tuesday:
Melbourne lockdown slows national manufacturing recovery in August
Australia’s home building lifts from pandemic-induced eight-year low
Record current account surplus for Australia in Q2 2020
RBA holds rates, expands bank funding scheme
Commonwealth Bank Manufacturing PMI: 53.6 in August vs. 54.0 in July
Wednesday:
Australian 2Q20 GDP falls 7.0% in Q2 2020 – expectations were for a -6.2% drop so it’s no surprise the Aussie was knocked lower after the event.
Thursday:
Australia’s construction industry slump continues into August 2020
Australia trade surplus narrows even as gold exports hit record
Australia services activity falls in August amid renewed COVID-19 measures
Australia Retail sales falls -3.2% m/m in July, following a +2.7% rise in June.
In addition to an ugly round of economic updates from Australia, it’s likely the broad risk-off sentiment during the Thursday session sparked by weak economic updates around the globe (e.g., Eurozone Services Business Activity Index: 50.5 in August vs. 54.7 in July, 115,762 U.S. Job Cuts in August, recovery in China’s services sector loses a step) added pressure to Aussie bulls.
Friday: