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Currency Market Analysis

Jul 06, 2020 | Currency Market Analysis

Global Themes

Aussie holds steady amid rising infection rate


• Record weekend for virus cases
• Melbourne infection hot spot
• RBA on Tuesday

Equities rally while global cases set new records.

With equity markets up around 40% since the lows of March, we have seen the AUD recover back to the levels seen prior to the pandemic. However, this weekend saw a global record set for new cases led by the United States and notably an increase in cases here in Australia. The outbreak is centered around Melbourne, threatening Australia’s exemplary virus response so far. However, that has not translated into a downward theme for the AUD in early trading with the Aussie holding up.

This week

Up this week we have the RBA and their interest rate decision on Tuesday. It is highly likely to remain where it is now, not only for this meeting but also for the foreseeable future.

In addition, data from the US, including weekly jobless claims, will be closely watched to see how the recent surge in cases has affected their re-opening plans and the impact this has on the economy.

Today...

Today we have ANZ job advertisements at 11:30am AEST which should give us a window into the current jobs market.

Overnight, the upcoming US data will indicate if the non-manufacturing sectors are still in contraction or have started to recover.


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