The Australian took advantage of the encouraging coronavirus situation at home, but worsening Sino-US relations and concerns over the US economy have limited further gains, said FXStreet analyst Yohay Elam.
“Unless there is a surprising second wave in Australia, the pace of reopening could have an impact on the Australian, with the gradual return to normality supporting the Australian.”
“Economists expect a considerable loss of jobs, however tiny compared to the crash seen in other developed economies. The unemployment rate in Australia is likely to remain well below 6%. ”
“There is a bipartisan criticism in the United States against China. While this remains a matter of politics and rhetoric, investors could learn to get rid of it. However, switching to new rates or canceling the trade deal could hurt sentiment and the Aussie, a currency at risk. ”
“The US economy is suffering, and further evidence of this will likely be seen in retail sales figures for April, which could experience double-digit drops after falling more than 8% in March.”