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AUD News: Australian Dollar Weekly Review - 27 Aug

31st August 2020

The Australian Dollar has trended higher through this week’s session as an improved market mood underpinned the risk-sensitive currency.

This was triggered by both easing US-China trade tensions, after both sides reaffirmed their commitment to a phase one deal, as well as the news the US had approved a promising coronavirus treatment.

AUD exchange rates were further supported by upbeat domestic data, showing that business spending fell less-than-expected in the second quarter.

The ‘Aussie’ carried this momentum through the second half of the week as the US Dollar weakened following the Federal Reserve’s annual Jackson Hole Symposium, buoying the appeal of the Australian Dollar.

Australian Dollar (AUD) Weekly Review

  • AUD/USD trading at: 0.7258 – Up a cent on the week’s low
  • AUD/GBP trading at: 0.5488 – Unchanged on the week’s opening levels
  • AUD/EUR trading at: 0.6135 – Up a cent on the week’s low
  • AUD/NZD trading at: 1.0937 – Down a cent on the week’s high

Australian Dollar Forecast

Turning to next week’s session, the Australian Dollar looks set to be driven by some highly influential domestic data releases.
Top of the agenda will undoubtedly be Australia’s latest GDP figures. While confirmation that Australia fell into a recession in the second quarter looks almost certain, a deeper-than-expected contraction could weigh heavily on the ‘Aussie’.
Also of key concern to AUD investors will be the Reserve Bank of Australia’s (RBA) September rate decision. No changes to monetary policy are expected, but will a cautious outlook from the RBA drag on the Australian Dollar?
In wider currency trade, the publication of the latest US payroll figures are likely to act as a key catalyst for the US Dollar. The latest Eurozone CPI figures will also be in the spotlight as another lacklustre inflation reading is likely to stoke concerns the bloc’s economic recovery is stalling.

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*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.