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AUD News: Australian Dollar Weekly Review - 18 September 2020

18th September 2020

The Australian Dollar has traded in a wide range again this week as the risk-sensitive currency was rocked by shifting market sentiment.

This saw the Aussie initially strengthen, bolstered by some upbeat Chinese data and coronavirus vaccine optimism.

Also buoying AUD exchange rates were the minutes from the Reserve Bank of Australia’s (RBA) September policy meeting, as the RBA signalled that Australia’s economic downturn has not been as severe as initially expected.

The Aussie sought to strengthen further on Thursday on the back of a surprisingly strong domestic jobs report, which revealed a shock fall in the unemployment rate last month.

However these gains proved to be fleeting, with the Australian Dollar snapping a four-day winning streak as the risk-tone faded and the US Dollar started to strengthen again following the Federal Reserve’s latest policy decision.

Australian Dollar (AUD) Exchange Rates Weekly Review

  • AUD/USD trading at: 0.7302 – Down a cent on the week’s high
  • AUD/GBP trading at: 0.5629 – Unchanged on the week’s opening levels
  • AUD/EUR trading at: 0.6187 – Unchanged on the week’s opening levels
  • AUD/NZD trading at: 1.0858 – Down a cent on the week’s high

*Rates shown are market rates, not available to the public. Rates are current as at 18 September 2020.


Australian Dollar Forecast

Looking ahead, the Australian Dollar is likely to remain highly sensitive to market sentiment through next week’s session, potentially giving way to further volatility as investors remain skittish in the face of coronavirus, Brexit and US election uncertainty.

On the data front, the only release of note will be CommBank’s preliminary PMI figures on Wednesday.

These could put some pressure on the Aussie if they indicate activity in Australia’s private sector remained subdued this month.

In broader trade, the Pound and Euro will be influenced by the latest PMI releases from the UK and Eurozone, while the former could be infused with additional volatility as the latest round of Brexit trade negotiations get underway.

Also of note will be the Reserve Bank of New Zealand’s (RBNZ) latest rate decision, will the RBNZ signal plans for more easing?


*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.