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AUD News: Australian Dollar Weekly Review - 11 September 2020

11th September 2020

The Australian Dollar experienced volatility again this week in response to fluctuating market sentiment.

AUD exchange rates initially rallied on the back of some positive Chinese trade figures, as well as a stronger-than-expected print of Australia’s business confidence index in August.

However, the Australian Dollar then suffered a sharp sell-off through Tuesday’s trading session as Brexit jitters and a plunge in US equity markets saw investors favour safe-haven assets.

The ‘Aussie’ was further dented by the news that trials for a promising coronavirus vaccine had been halted after a participant reportedly suffered an adverse reaction.

However, the Australian Dollar reversed its decline in the latter half of the week, with an improvement in market sentiment and broad sell-off of the US Dollar allowing AUD to claw back its losses.

Australian Dollar (AUD) Weekly Review

  • AUD/USD trading at: 0.7270 – Up a cent on the week’s low
  • AUD/GBP trading at: 0.5586 – Up a cent on the week’s low
  • AUD/EUR trading at: 0.6145 – Unchanged on the week’s opening levels
  • AUD/NZD trading at: 1.0889 – Up a cent on the week’s low

*Rates shown are market rates, not available to the public. Rates are current as at 11 September 2020

Australian Dollar Forecast

Turning to next week’s session, the Australian Dollar could face more volatility as the recent global resurgence in coronavirus is likely to stoke concerns that the recovery in global growth may be under threat.

On the data front, a few releases will likely influence AUD exchange rates, including:

  • RBA minutes
  • Unemployment Rate
  • New Homes Sales

Of these, the most impactful is likely to be Australia’s latest jobs report, with another bump in the unemployment rate last month potentially dragging on the ‘Aussie’.

In international trade, rate decisions by the Federal Reserve and Bank of England will be in the spotlight for USD and GBP investors, while a renewed focus on Brexit is also likely to ensure trade in the Pound remains choppy.

*Forecasts provided by TorFX TorFX Pty Ltd. AFS Licence number 246838. The information on this website has been provided for general information purposes only and must not in any way be construed or relied upon as personal advice.