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Currency Market Analysis

Feb 19, 2020 | Currency Market Analysis

Global Themes

AUDUSD back at lows as RBA warns on coronavirus

• AUD pressured further
• RBA says rates low for "extended period"
• Local wages, jobs in focus

RBA warning

The Australian dollar was weaker again yesterday after the Reserve Bank of Australia warned about the impact of coronavirus on the Australian economy.

In yesterday’s RBA minutes, the board noted that coronavirus was “a new source of uncertainty” and was likely to subtract from export growth in the first half of 2020.

The RBA also said that it expected interest rates to stay low for an “extended period”.

The AUDUSD fell sharply on the release with the pair within striking distance of new 11-year lows.

AUD down

The AUDUSD ended down 0.4%.

The AUDGBP fell 0.3% while the AUDJPY lost 0.4%.

The AUDEUR was steady as the euro tumbled on a sharp drop in German business confidence.

Wages, jobs due

The AUD will remain in focus with two key releases due in the near term.

Today, local wage data news is likely to indicate local wage growth remains sluggish.

Tomorrow, January employment is released, with any drop-off from either bushfires or coronavirus potentially weighing on the AUD.

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