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We saw mostly negative economic updates and commentary from Australia this week, but the Australia dollar traded mostly mixed through it all. Counter currency flows and broad risk sentiment were likely drivers for the mixed performance. 

, AUD Weekly Review (July 27 – 30)
Overlay of AUD Pairs: 1-Hour Forex Chart
, AUD Weekly Review (July 27 – 30)
AUD Weekly Performance from MarketMilk

Australian Headlines and Economic data

Monday:

RBA Assistant Governor Kent gave a speech that covered the global financial conditions and the RBA’s actions during the initial market panic reaction to the COVID-19 pandemic. Overall, the RBA’s operations to support the economy with low borrowing costs and an ample supply of credit seems to have worked well. 

Tuesday:

ANZ: Australia’s consumer confidence dropped 1.7 points this week

Australian employment suffers setback from second virus wave

Wednesday:

Australia announces tighter border restrictions in Queensland

Australian Q2 headline CPI down by 1.9% after earlier 0.3% uptick

Australia’s trimmed mean CPI posted 0.1% dip instead of 0.1% gain

Thursday:

AU June building dwelling approvals slide to eight-year low

Victoria’s COVID lockdown could be extended with Stage Four not ruled out, premier says

Australia Treasury Secretary paints grim picture as economy reels from pandemic

Australia Lowballs Iron Price That Boosts Economy and Budget

Australia Import price index fell -1.9% this quarter; export prices fell -2.4% this quarter

After a negative turn during the Asia session correlating with the terrible Australian updates above, the Aussie dollar bottoms out during the U.S. session and turns a corner heading into the Friday session.  This is likely sparked by U.S. dollar weakness and possibly by the U.S. tech sector rally ahead of big tech earnings.

Friday:

Australia’s PPI fell by 1.2% in Q2 after earlier 0.2% uptick

Australian private sector credit sank by 0.2% vs. projected 0.1% dip

 



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