The Aussie, a ‘risk’ currency, traded between optimism and pessimism, driven by volatile oil prices. Top-tier US events and Australian CPI figures are in the mix as April draws to a close, FXStreet’s analyst Yohay Elam briefs.
Key quotes
“The gradual reopening of the Australian economy will likely be followed closely. Investors will want to see that coronavirus statistics remain low in the land down under. The Aussie’s role as a commodity currency means that prices of metals will also be of interest.”
“The economic calendar features the backward-looking Australian Consumer Price Index release for the first quarter. Economists foresee a pickup in inflation, yet the RBA is unlikely to raise rates anytime soon.”
“The first estimate for the US Gross Domestic Product for the first quarter is set to show an annualized contraction of 4.1%, which may be only the beginning of a downfall.”
“The Fed will likely leave its interest rate at 0% and continues its massive QE schemes and other measures. Jerome Powell, Chairman of the Fed, will likely present new economic forecasts which may move markets. The dollar has room to rise in response to inaction or gloomy forecasts.”
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