With no major catalysts from Australia this week, price action in Aussie pairs were driven mainly by global risk sentiment and counter currency flows in a low volatility week.
Overlay of AUD Pairs: 1-Hour Forex Chart
AUD Weekly Performance from MarketMilk
Australian Headlines and Economic data
Monday:
Australia AIG Services Index: 42.5 in August vs. 44.0 in July
Job advertisements rise just 1.6% in August vs. 19.1% in July
Tuesday:
Australia business conditions soften, confidence still fragile: survey
Australian banks to fund government stimulus bill
Aussie performance diverged on Tuesday, indicating that broad risk sentiment was the main influence on Aussie traders for the session.
Wednesday:
AU’s Westpac: consumer sentiment roars back despite news of recession
Australia July home loans jump sharply as mobility restrictions eased
Thursday:
With no major catalysts from Australia and broad risk sentiment leaning more negative, the broad move higher in the Aussie during the U.S. session was likely a reaction to counter currency flows as the U.S. dollar weakened during the ECB monetary policy event (pressure from a stronger euro after a lack of an expected jawboning from the ECB), and Sterling weakness on rising Brexit fears.
