Positive risk appetite spurs Aussie bounce back

Daily Currency Update

The Australian Dollar ended the week on a positive note, bouncing back 0.6% to open this morning at 0.6363. The about face found the momentum through a shift in market sentiment which saw a broad-based sell off of the Greenback and strong gains in equity markets.
Risk sentiment was buoyed on Friday as President Trump released his roadmap to reopen the US economy as well as news of Gilead Science’ anti-viral drug having some success in combatting COVID-19 in a preliminary trial. While experts are cautious about the preliminary results, the market accepted the news with gusto, prepared to see the results through the lens of a glass half full.
Closer to home, the Aussie looked to its largest trade partner for direction with China releasing a smorgasbord of data for the market to digest. Chinese GDP kicked things off with a moderately weaker result than expected at -6.8% y/y for Q1. Despite the fall in GDP, the results were somewhat counterbalanced by the positive story from Industrial Production figures which confirmed a strong rebound in activity in March. Chinese leaders are also reported to have pledged to deliver more stimulus with rumours suggesting that this could take the form of an interest rate cut.
Moving into Monday, the Aussie is set to enjoy a quiet day on the domestic economic calendar with direction again being driven by COVID-19 headlines.