AUD News: Australian Dollar Weekly Review - 9 July 2020

The Australian Dollar has been voltile over the past week as coronavirus concerns continued to rock markets.

While the ‘Aussie’ initially rallied amidst a more optimistic market outlook at the start of the week, these gains proved short lived in light of the Reserve Bank of Australia’s (RBA) cautious tone following its latest policy decision.

These losses were extended after it was announced that over five million residents of Melbourne city would be put back into lockdown after a spike of coronavirus cases in the region.

AUD exchange rates then began to recover in the second half of the week on the back of a broad US Dollar sell-off, but again these gains proved fleeting as a negative PPI reading from China dampened AUD sentiment.

Turning to next week’s session, any further upside in the Australian Dollar looks to be determined by coronavirus developments, with the risk sensitive currency potentially facing headwinds if the continued rise of new cases both domestically and globally unnerves investors.

In terms of economic data there will be a few releases of note for AUD investors next week, these include:

• Unemployment figures
• Business Confidence
• Consumer Confidence

Of these, it's likely that Australia’s latest jobs report will be the most influential, with the ‘Aussie’ likely to come under some pressure if the unemployment rate continued to rise at an accelerated pace in June.

In international markets, the latest rate decisions from the European Central Bank (ECB) and Bank of Canada (BoC) are likely to be key priorities for investors. Also of note will be a slew of UK economic data, with a particular interest being paid to May’s GDP figures.

*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.