Weekly Roundup: Australian dollar bolstered by risk-on flows
Roxane Cody November 27th 2023 - < 1 minute read
The Australian dollar trended broadly higher last week, with the initial upside in the ‘Aussie’ being supported by the minutes from the Reserve Bank of Australia’s (RBA) November policy meeting.
Aiding the Australian dollar’s ascent was a prevailing risk-on mood, as hopes for a US interest rate cut helped to ease global recession fears.
However, it wasn’t all plain sailing for the ‘Aussie’, which faced some resistance in response to some disappointing domestic PMI releases.
Looking ahead, AUD exchange rates may face some headwinds at the start of this week as Australia’s latest retail sales data is expected to report a slowdown of sales growth last month.
However, any subsequent movement is likely linked to market risk appetite, potentially paving the way to further gains if the mood remains broadly optimistic.