Australian Dollar Data Drought Will Leave Coronavirus In Charge
No news is highly unlikely to be good news for battered Australian Dollar bulls in the coming week. The currency faces a lack of scheduled economic data or central bank activity, but that lull is only more likely to leave the trading field wide open to the coronavirus story.
The Australian Dollar has already been smashed by the contagion’s horrible spread. As perhaps the major currency most correlated to global growth expectations its pain is unsurprising. Moreover the virus’ impact feeds back to the Australian economy in any number of ways. The country’s huge raw-material export links to China along with its continental size and economic reliance on long-distance travel and tourism are merely the two most obvious ones.
Another became clear in the past week as the Reserve Bank of Australia cut interest rates to a new record low for the second time this month. This move not only stripped the currency of what little monetary support it had, it also walloped Australian lenders and saw the ASX 200 equity benchmark fall even further.
News Source – dailyfx.com