Weekly Roundup: Australian dollar dragged down by souring mood
Amy Richards July 24th 2023 - < 1 minute read
The Australian dollar started last week’s session on the defensive, with a weak Chinese GDP reading weighing on the risk-sensitive ‘Aussie’.
The Reserve Bank of Australia’s (RBA) latest meeting minutes then put further pressure on AUD, as they revealed that policymakers considered a pause at the bank’s recent meeting.
AUD exchange rates bounced back later in the week after strong Australian jobs data boosted RBA bets. However, the ‘Aussie’ relinquished these gains as a bearish mood in markets dampened the risk-sensitive currency’s appeal.
Turning to this week’s session, the Australian dollar is mixed so far as a slight improvement in market sentiment offsets downbeat PMI results.
In the spotlight for AUD investors this week is Australia’s latest inflation rate reading. If cooling inflation dents RBA bets, the ‘Aussie’ could tumble.
Written by
Amy Richards