The Australian dollar fell during the past trading week but bounced by the weekend to end week about flat. The currency got support from risk appetite on the Forex market as well as other positive fundamental factors.
One of the major sources of the Aussie’s strength was the string of positive macroeconomic reports in China, Australia’s biggest trading partner. Australia’s retail sales were very supportive to the currency as well. Hopes for a positive outcome of the Sino-US trade talks was yet another helpful factor. Among negative fundamentals was the monetary policy statement from the Reserve Bank of Australia, which shifted its stance from neutral to data-dependent.
Among factors affecting other currencies were mixed US nonfarm payrolls, the ongoing Brexit drama, and an interest rate cut by the Reserve Bank of India.
AUD/USD started the week at 0.7116, dropped to 0.7052, but rebounded to 0.7103 by the weekend. EUR/AUD closed at 1.5779 after opening at 1.5764 and rallying to the weekly high of 1.5878. AUD/JPY rose from 79.01 to 79.35 over the week, rebounding from the weekly low of 78.48.
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Aussie Ends Week Flat, Rebounding After Decline
