AUD News: Australian Dollar Weekly Review - 13 November 2020

The Australian Dollar traded in a wide range over the past week as fluctuating market sentiment stoked volatility in the risk-sensitive currency.

The Aussie dollar initially opened the week on solid footing, rallying in response to the news that Joe Biden had been declared the winner of the US presidential election by most major news organisations.

This upbeat mood was then extended after US pharmaceutical giant Pfizer announced that its experimental coronavirus vaccine has shown 90% effectiveness and that it would be applying for emergency approval by the end of the month.

However, the Australian Dollar was unable to sustain the spike that followed the announcement, with a disappointing Chinese CPI release swiftly dethroning the Aussie dollar.

AUD exchange rates then struggled to find any meaningful gains through the rest of the week as renewed coronavirus jitters and Trump’s refusal to concede the US presidential election further undermined market risk appetite.

Looking ahead to next week’s session, we predict more volatility ahead for the Australian Dollar as coronavirus developments and Trump’s refusal to concede the US presidential election look set to continue dominating currency movements.

In terms of domestic data, there will be a few things of note to AUD investors, including:

• RBA Minutes
• Wage Price Index
• Unemployment Figures

Of these, the spotlight is likely to be on Australia’s latest jobs report, with the Aussie dollar poised to stumble if the unemployment rate jumped higher again in October.

In international trade, Brexit is likely to be back in the spotlight next week on the hopes that the UK and EU will have reached a deal before the next EU summit on Wednesday, with any setbacks likely to weigh heavily on the Pound. Also in focus will be the latest US retail sales release as an expected drop in sales growth last month is likely to raise concerns over demand.

*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.