The Australian Dollar enjoyed another day of mixed fortunes to ultimately close out the week slightly higher against the USD at 0.7549. The Aussie battled through the session holding firm above the 0.7540 support level and reached a high of 0.7589 on the back of higher commodity prices and a revival in risk appetites. However, fortunes reversed sharply when US President Trump again tweeted his thoughts, sending traders into risk-aversion territory.
Initially driven by positive headlines from the worlds’ two biggest economies, the Aussie enjoyed a potential wind-down of US, with Chinese trade tensions leading to a sharp, albeit brief, recovery. The AUD was also given a leg-up with mixed commodity prices. Gold recovered above the 1,300.00 threshold as Crude Oil retreated sharply after hitting multi-year highs. Ultimately however, the positive sentiment was to reverse as the brakes were applied by President Trump who tweeted his unhappiness with on-going developments with China.
Closer to home, the economic calendar was relatively bare to close out the week and remains light to close out the month of May. Traders now find the pair locked in neutral territory with the bears and bulls battling for direction. The Aussie now looks to enjoy a few days of respite from the economic data releases with the first note-worthy release due for Wednesday.