The Aussie dollar took the crown this week despite net negative updates from Australia. Shifting RBA rate cut calls and broad risk-on sentiment were likely the main drivers for its outperformance.
Australia Headlines and Economic data
The Aussie started the week as a broad winner against the majors. This was likely due to analysts pushing their rate cut call from October to November, and likely on the rebound in risk assets after last week’s sell off.
The messy U.S. Presidential debate sparked a broad move in risk sentiment towards risk aversion, likely the catalyst for the Aussie’s move lower. Sentiment later reversed towards positive to likely lift the Aussie back upon rising hopes of new U.S. stimulus package coming soon.
The Aussie broadly moved lower during the Asia session as traders ran to safety after U.S. President Trump’s announcement on Twitter that he and the First Lady contracted COVID-19, increasing the uncertainty of the upcoming U.S. Presidential election.