Market Update – 8th May 2020 – AUD Surges As Lifting Of Restrictions Gets Closer

Please note that the commentary below is factual information provided to a group of readers as a web blog, and where an opinion is expressed by the author, it is GENERAL ADVICE only.

AUD Surges:

The Aussie Dollar has continued to surge through the week gaining as much as 2% vs. the Greenback and nearly 3% vs. the Great British Pound. The gains are a result of generally more bullish investor sentiment but also better than expected local Covid19 infection numbers which continue to decline quicker than many had anticipated.

Scott Morrison is due to meet his national cabinet today and it’s widely expected they’ll revise COVID-19 restrictions following consistent low numbers of infections. Expectations are a reduction in restrictions in stages and over perhaps as long as a month or two. However overall the likelihood of eased restrictions is certainly bolstering the AUD’s appeal as a global safe haven amongst currencies and economies much harder hit by the virus.

It’s therefore not inconceivable that the AUD could rally to as high as 70 before the end of the year if we keep outperforming on containment of Covid19.

The ASX is tipped to open around 0.7% higher after a solid session in the U.S and Europe where stocks gained as much as 1.4%.


AUD/USD – 0.6470

AUD/GBP – 0.5225

AUD/EUR – 0.5970

AUD/NZD – 1.0638

AUD/JPY – 68.866


All Ords (XAO) – 5,449

Gold – A$2,637/oz

Silver –  A$23.50/oz

Oil – US$24.70 barrel


AUD – RBA Monetary Policy Statement at 11.30am

USD – Non-Farm Employment Change at 10.30pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 



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