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Currency Market Analysis

Jul 07, 2020 | Currency Market Analysis

Global Themes

Aussie gains with the RBA in focus

• Equities continue to climb
• Optimism boosts AUD
• RBA decision

Aussie follows markets optimism

The Aussie dollar continued to rise alongside equity markets in overnight trading, US services data beat expectations showing continued expansion from previous contraction levels and leading the Dow to rise by 460 points on a late surge. Yesterday’s domestic job data showed a vast improvement in job advertisements, coming in at +42% month on month continuing to add to the optimistic mood around the Australian currency.

The Aussie has benefited from the equity surge so far this month, up 1.04% month to date versus the US Dollar and performing well against safe haven currencies as optimism prevails. Further demonstrated by the Aussie Dollar up 0.56% vs the Japanese Yen and up 0.49% vs the Swiss Franc month to date

RBA Today

At 2:30pm AEST we have the cash rate decision from the RBA, with no change expected in rates. We are broadly expecting the central bank to sound optimistic on their implemented measures so far and not to introduce anything new.

RBA board member Ian Harper stated that to have AUDUSD at any levels above 0.70 would be “unhelpful”. Any comments that reinforces the existing views are closely watched during today’s meeting.

Today...

Today as mentioned above we have the RBA at 2:30pm AEST.











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