AUD slides further from one week high
Monday 19 October, 2020
Daily Currency UpdateThe Aussie slid further down, coming off a one week high of 0.7231 against the USD to open at 0.7078 this morning. The Aussie Dollar took a beating in the last week as employment figures came out showing unemployment figures of 29.5k jobs lost in September. While this did beat forecasted figures of 35k, comments from the RBA indicated that interest rates would be cut down to 0.10% from the current record low of 0.25%. Coupled with strong US retail data released late Friday night, the AUD looks vulnerable for further sell offs and risk sentiment remains weak.
In the future, we can expect some major movements on Tuesday as the RBA will release their monetary policy meetings. Showing a detailed record of the RBA’s most recent meeting, it can provide in-depth insights into the economic conditions that influenced their decision on where to set interest rates and indicate if a rate cut is likely in the future.
Key MoversUS retail sales came back much stronger than expected with the change of the total value of sales at the retail level coming in at 1.9% for the month, compared to forecasts of 0.7%. While this is a sign that the US economy’s driver remains healthy, there are many that believe this optimism may be short lived.
We can also expect to see some major movement in the USD as Federal Reserve Chair Powell is scheduled to speak late on Monday night. As head of the central bank which controls short term interest rates, he has more influence over the nation’s currency value than any other person. He is expected to participate in a panel discussion about cross-border payments and digital currencies.
Over in China, their National Bureau of Statistics will release their quarterly GDP data just after midday. This shows the change in the inflation-adjusted value of all goods and services produced by the economy, and is the broadest measure of economic activity and health.
- AUD/CAD: 0.9220 - 0.9375 ▼
- AUD/EUR: 0.5885 - 0.6095 ▼
- GBP/AUD: 1.8020 - 1.8525 ▲
- AUD/NZD: 1.0605 - 1.0795 ▼
- AUD/USD: 0.6860 - 0.7150 ▼