Weekly Roundup: Australian dollar tumbles in risk-off trade
Amy Richards February 27th 2023 - < 1 minute read
The Australian dollar trended broadly lower last week, with the risk-sensitive currency struggling to attract support as a bearish market mood prevailed.
The gloomy mood was linked to heightened geopolitical tensions in addition to expectations for more aggressive monetary tightening from most of the major central banks.
Piling more pressure on the ‘Aussie’ in the middle of the week was the publication of Australia’s latest wage price index.
An unexpected fall in wage growth in the last quarter of 2022 weakened inflation expectations, which in turn undermined Reserve Bank of Australia (RBA) rate hike bets.
A strong uptick in the US dollar then kept the AUD selling bias firmly in place through the second half of the week.
The publication of Australia’s latest GDP figures will undoubtedly be centre stage for AUD investors this week. Will a solid expansion of growth in the last quarter of 2022 help the Australian dollar recoup some of its recent losses?
Written by
Amy Richards