• Australian Dollar (AUD) rallies on reopening optimism
  • Investors await Trump’s response on China
  • US Dollar (USD) remains on back foot after personal spending -13.6%
  • At 14:00 UTC, AUD/USD +0.5% at US$0.6661

The Australian Dollar is gaining ground versus its US counterpart for a second straight session on Friday. The Aussie Dollar US Dollar exchange rate settled on Thursday +0.24% at US$0.6637.

At 14:00 UTC, AUD/USD is trading +0.5% at US$0.6661. This is towards the upper end of the daily traded range of US$0.6613 – US$0.6683, as the Australian Dollar continues its impressive climb.

The pair is on track for a 2.3% rally across May, adding to a 6.1% surge in April. It now trades back at the same level as it was in early March prior to the coronavirus crisis spreading.

The risk sensitive Australian Dollar is posting gains as it brushes of concerns over rising US – Sino tensions. Tensions have been steadily rising between the two powers across the week as they clash over China’ controversial national security law in Hong Kong.

Later today President Trump is due to give a speech on China. He is expected to give his response to China’s actions. The stance he adopts and the course of action that he decides on could direct risk sentiment heading into the weekend.

Instead the Australian Dollar has driven higher, boosted by optimism surrounding the global easing of lockdown measures and reopening of economies.

There is no Australian economic data due for release today. Investors will look ahead to Australian and Chinese manufacturing PMI figures due for release on Monday morning local time for further clues over the recovery.

The US Dollar is trending lower following worse than forecast consumer spending figures. Consumer spending, which accounts for around two thirds of the world’s largest economy, tanked by the most on record in April. The data revealed that the coronavirus lockdown saw demand for all but non-essential goods evaporate, with purchases halting.

Household spending fell by a worse than forecast -13.6% compared to March, compared to the -12.8% decline that analysts had been forecasting.

On a more positive note, income rose a record 10.5%, well ahead of -5.9% drop expected. However, this was on the back of federal economic recovery payments which have distorted the numbers.

In addition to Trump’s speech, Federal Reserve Jerome Powell is also speaking. However, given his numerous appearances in recent weeks he is not expected to add 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.