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AUD News: Australian Dollar Weekly Review - 5 May 2020

5th May 2020

Thanks for asking we did enjoy the long weekend. 

The Australian Dollar traded in a wide range again last week against a backdrop of shifting market sentiment and mixed domestic data.

The first half of last week saw AUD exchange rates make some solid gains as the market mood was buoyed by talk of countries preparing to reopen their economies in the coming weeks (YAY – travel, pubs, hugs….OH MY).
Further strengthening the ‘Aussie’ was our quarterly CPI figures, which revealed domestic inflation climbed to a five-year at the start of 2020.
However, the Australian Dollar’s was brought crashing back to earth in the latter half of the week amid a sudden souring of market mood.  These losses were exacerbated by Australia’s PMI figures as they revealed a sharper than expected drop in manufacturing activity in April.

Australian Dollar (AUD) Weekly Review

AUD/USD trading at: 0.6445 – Down a cent on the week’s high
AUD/GBP trading at: 0.5135 – Down over a cent on the week’s high
AUD/EUR trading at:  0.5871 – Down almost two cents on the week’s low
AUD/NZD trading at: 1.0599 – Down one cent on the week’s low

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

What’s happening this week that will likely affect the Australian Dollar

We’re likely to find that the Australian Dollar remains highly sensitive to market sentiment, with the currency weakening if coronavirus concerns continue to limit risk appetite.

On the data front there will be a few releases which AUD investors will be paying close attention to, including:
• The RBA’s rate decision
• Trade balance
• Retail sales
The main focus will of course be on the Reserve Bank of Australia (RBA). While no policy changes are expected from the RBA this week, AUD investors will be keeping a close eye on the bank’s forward guidance for any hints on future stimulus plans.
In other markets currency traders will be watching the Bank of England as it delivers its own rate decision as well as April US payroll figures, which are expected to report an unprecedented collapse in employment.

*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.