Weekly Roundup: Australian dollar rises amid risk-on mood
Amy Richards August 29th 2023 - < 1 minute read
The risk-sensitive Australian dollar strengthened last week as an improving global market mood increased AUD’s appeal.
The rising appetite for risk came amid a rally in tech share prices following blowout profits from US chipmaker Nvidia. Thawing US-China relations also added to the optimistic mood.
However, weaker Australian PMI data caused some volatility midweek. The ‘Aussie’ also found its upside clipped as risk appetite softened slightly at the end of the week, trimming AUD’s gains.
This week, the Australian dollar has wavered higher as risk appetite returns to markets and Australian retail sales beat forecasts.
An anticipated cooldown in July’s inflation rate could dent AUD on Wednesday, by decreasing the likelihood of more rate hikes from the Reserve Bank of Australia (RBA).
Written by
Amy Richards