Weekly Roundup: Australian dollar firms amid upbeat market mood
Amy Richards January 16th 2023 - < 1 minute read
A bullish tone in markets gave the risk-sensitive Australian dollar a lift early last week, before a more cautious mood tempered AUD’s upside.
The ‘Aussie’ enjoyed renewed support in midweek trade. Stronger-than-forecast Australian retail sales data and a risk-on rally following the US CPI both lifted AUD exchange rates.
At the end of the week, the Australian dollar stabilised. Mixed trade data from both Australia and China prompted limited movement in the ‘Aussie’.
Turning to this week’s trade, a forecast decline in Australian consumer confidence could hurt the ‘Aussie’ overnight on Monday.
The latest labour market report later in the week may lift AUD exchange rates. If the unemployment rate holds at a record low of 3.4%, investors may bet on more rate hikes from the Reserve Bank of Australia (RBA).