Weekly Roundup: Australian dollar rebounds as risk appetite recovers
Amy Richards October 2nd 2023 - < 1 minute read
The Australian dollar weakened through the first part of last week as a grim market mood sapped demand for the risk-sensitive currency.
The threat of a US government shutdown as well as concerns over China’s property sector crisis proved to be the main headwinds for the ‘Aussie’.
Even an uptick in Australian inflation in August failed to stem AUD’s losses.
However, the ‘Aussie’ staged a strong recovery at the end of the week, thanks to an improving mood. This saw AUD end the week higher against many of its peers.
So far this week, slowing inflation in September has seen the ‘Aussie’ soften.
The reading comes ahead of the Reserve Bank of Australia’s (RBA) interest rate decision on Tuesday morning. If the RBA leaves rates unchanged, as expected, we could see AUD decline.