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AUD News: Australian Dollar Weekly Review - 30 October 2020

30th October 2020

The Australian Dollar tumbled this week, with the risk-sensitive currency falling victim to a marked souring of market sentiment in recent days.

This came as coronavirus panic swept through markets, with surging cases and the threat of new lockdowns spooking investors and quashing risk appetite.

Putting additional pressure on AUD exchange rates was the growing expectation that the Reserve Bank of Australia (RBA) will cut interest rates to a record low of 0.1% when policymakers meet next week.

One ray of light for the Aussie was the publication of Australia’s consumer price index on Wednesday, which reported a slightly stronger-than-expected rebound in domestic inflation in the third quarter.

However, this provided only fleeting support for the Australian Dollar as a sell-off in equity markets and fears of a drawn out US election ensured a bearish tone prevailed.

Australian Dollar (AUD) Exchange Rates Weekly Review

  • AUD/USD trading at: 0.7044 – Down a cent on the week’s high
  • AUD/GBP trading at: 0.5410 – Down a cent on the week’s high
  • AUD/EUR trading at: 0.6004 – Unchanged on the week’s opening levels
  • AUD/NZD trading at: 1.0610 – Down a cent on the week’s high

*Rates shown are market rates, not available to the public. Rates are current as at 30 October 2020.

Australian Dollar Forecast

Looking ahead, with the number of countries entering lockdown only set to increase and US political uncertainty set to reach fever pitch, it seems safe to assume that the Australian Dollar will be infused with additional volatility next week.

On the data front, the focus for AUD investors will be on the RBA’s latest rate decision, where an interest rate cut looks all but guaranteed.

Despite being largely priced in by markets, Tuesday’s decision could still exert some pressure on the Aussie, particularly if the RBA signals that there may be more easing to come.

In international trade, the US election will undoubtedly be the highlight of the week, with a drawn out results process likely to favour the safe-haven US dollar. Also of note will be the latest rate decisions by the Bank of England (BoE) and Federal Reserve, as markets will be looking to the central banks for direction amidst renewed coronavirus concerns.


*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.