- Strong Australian trade data helped the AUD higher
- The RBA keeping rates on hold also supported the currency
- Late today, the AUD/USD started to fall to 0.6822 by the end of trade
AUD to USD exchange rates
|In the last week||0.6756||0.6861|
|In the last month||0.6756||0.6926|
The AUD/USD exchange rate managed to move higher on Tuesday and early on Wednesday thanks to a couple of Australian economic events.
First, the trade balance figures came out. It showed a current account surplus for the second month in a row - something that hasn't happened in 46 years. The surplus is largely driven but massive amounts of commodities being exported at relatively high prices.
Next, the RBA held interest rates steady at 0.75%. While this was widely expected, clearly a small part of the market was still betting on a rate cut. When it didn't come through, the AUD popped up higher.
Just as things were looking strong for the Australian dollar, it started to fade towards the end of Wednesday and kept falling after local markets closed.
It's a busy week both locally and abroad. In Australia, all eyes will be on the RBA interest rate meeting, decision and statement on Tuesday.
Overseas, a series of manufacturing data in China and the US should show what impact the ongoing trade war is having.
|China||Monday||Caixin China Manufacturing PMI|
|USA||Monday||Institute for Supply Management (ISM)|
|Australia||Tuesday||RBA Interest Rate Decision|
|Australia||Wednesday||Gross Domestic Product (GDP)|
|Eurozone||Thursday||Gross Domestic Product (GDP)|
|USA||Friday||Non Farm Payrolls|