australian-dollar-bank-notes-calculator - AUD
  • Australian retail sales dive by record -17.9%
  • Risk sentiments improves on economic recovery hopes
  • Will FOMC minutes mention negative rates?
  • At 13:45 UTC, AUD/USD +0.5% at US$0.6575

The Australian Dollar continues to gain traction versus its US counterpart for a third straight session on Wednesday. The Aussie Dollar US Dollar exchange rate rallied 1.9% across Monday and Tuesday this week.

At 13:45 UTC, AUD/USD is trading an additional 0.5% higher at US$0.6575 just shy of Tuesday’s two and a half month high and taking gains for the week to 2.4%.

Investors are shrugging off the record fall in Australian retail sales. Retail sales slumped -17.9% in April, after a record surge of 8.5% in March. This was its biggest fall ever recorded.

Every sector experienced a decline reflecting the dire consumer mood amid the coronavirus crisis. With unemployment set to rise to 11.7% by the middle of the year and remain elevated for the next 18 months, discretionary spending is unlikely to rebound strongly anytime soon.

Investors will now look ahead to the release of PMI data on Thursday morning local time. A speech by Reserve Bank of Australia’s Governor Dr Philip Lowe could also provide fresh impetus for the Australian dollar.

The weakening of the US Dollar across the board is boosting the pair. Risk sentiment remains fragile, however it is picking up across the start of the US session as investors cling to hopes of a recovery from the coronavirus slump. US stocks are expected to jump on the open, after a more downbeat European session.

Investors will now turn their attention to the release of the minutes from the April 28/29 Federal Reserve monetary policy meeting. Investors will pour over the minutes for clues as to any possible changes to monetary policy.

Discussion surrounding negative interest rates have been making the headlines over the past week. Whilst Fed speakers have talked down the possibility of negative rates, any positive comments on negative rates in the minutes could drag on the US Dollar.

Federal Reserve Chair Jerome Powell has made several appearances this week – a TV interview and a joint appearance with US Treasury Secretary Steve Mnuchin before the Senate banking committee. With this in mind, the minutes are unlikely to reveal anything new. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.