top of page
  • Writer's pictureChris Broadfoot

Riding the Waves: Aussie Dollar's Surging Week in Review.

Weekly Currency Update – February 18, 2024


The Australian Dollar had a green week as it was up 0.09% against the US Dollar. It also beat the Euro by 0.15% and the Japanese Yen by 0.68% this past week. Finally, AUD was up 0.31% against the British Pound, making it a currency that continues to climb and was highly optimistic overall. 


Looking ahead, the Reserve Bank of Australia is all set to release its meeting minutes early on Monday. RBA is battling against the Feds in the game of inflation. The minutes will help us understand whether they plan to cut the interest rates before reaching their inflation targets. 


Similar to the RBA, the Feds are going to release the highly anticipated FOMC meeting minutes on Wednesday. We should expect upcoming volatility in all USD markets, including AUD/USD. Interest rates currently remain between the 5.25% to 5% margin, but the minutes will reveal further data.


Moreover, the US is going to release data for the existing home sales in January. If it increases as predicted, the USD will likely face bullish market conditions. If not, expect to see some downtime for the currency.


AUD/USD


The AUD/USD pair started the week stable at about 0.651 until it reached a high of 0.653, after which the market plummeted to a low of 0.644. This was the lowest point in the market the entire week. However, the market quickly recovered and ended the week at a steady 0.652.


On Monday, the US released its crude oil inventory numbers. These numbers were previously at 5.521M, and we expected it to decrease to 3.300M, which would’ve been bullish for the USD. However, the inventory came out to be 12.018M, which was significantly bearish for the currency. 


On Thursday, US Core Retail Sales for January was released, showing a significant drop in consumer spending. The value last week was at 0.4%, and we expected sales to drop to only 0.2%. However, it plummeted straight to -0.6%, which was significantly bearish for the USD currency pair. 


Since the USD faced several adverse economic events this past week, the AUD was able to take the lead against the USD by 0.09%. As a result, the AUD/USD pair was in the bullish market last week. 


EUR/AUD


The EUR/AUD currency pair faced bearish market conditions this week. It started off the week at 1.654 before quickly plummeting to 1.648. On Tuesday, the market quickly recovered and reached a weekly high of 1.660. The rest of the week was a steady downfall before closing at 1.649.


On Wednesday, Australia released its Employment Change for January. The numbers were previously significantly low at -62.7K. The forecasted increase was 26.4K, but the actual numbers only managed to touch 0.5K. While this isn’t very high, at least we’re out of the negative values.


On Thursday, the Euro Zone released their Trade Balance numbers for December. The value was previously at 20.3B and was forecasted to increase to 21.5B. However, the numbers dropped to 16.8B, which was negative for the Euro. This caused the pair to face bearish market conditions. 


While the Australian Dollar didn’t hit its forecasted numbers as expected, the currency still performed better than its counterpart. As a result, the EUR/AUD faced a downfall this week.

1 view0 comments

Comments


bottom of page