australian-dollar-coin - AUD
  • Rising new covid-19 cases raise fears of lockdown measures being re-imposed
  • 40,000 new daily cases in US, Texas halts reopening plans
  • US consumer confidence & personal spending miss forecasts, adding to downbeat tone
  • Australian Dollar US Dollar exchange rate (AUD/USD) set to gain 0.15% across the week

The Australian Dollar is falling lower versus the US Dollar, paring gains from the previous session.

At 14:15 UTC, AUD/USD is trading -0.4% at US$0.6850. The is at the lower end of the daily traded range as a resurgence in new coronavirus cases in the US threatens to halt progress in the reopening of the US economy.

Risk aversion is dominating the US session, with riskier assets, such as equities, and riskier currencies, such as the Aussie Dollar, slipping lower.

The US recorded an all-time daily high of 40,000 covid-19 cases on Thursday, with a recent surge in California, Florida and Texas leading the way. Texas has halted its aggressive reopening plan in order to bring infections and hospitalisations back under control. Investors fear that this could happen in other states knocking the fragile economic recovery off course.

Rising cases aren’t just occurring in the US, parts of Europe, and Australia are also experiencing climbing infections, unnerving investors.  The markets have remained relatively buoyant despite lingering concerns and this is because the overriding assumption is that the Fed will ramp up assistance if the economy starts to crack.

There was no Australian data released today, leaving the currency to be driven by sentiment.

US domestic data added to the downbeat tone. US personal spending underwhelmed, rebounding by 8.2%, less than the 9% jump forecast. This was still a sharp increase on April’s record -12.6% drop.

US consumer confidence also came in short of expectations at 78.1 in June, missing forecasts of 79. Whilst this is only a slight difference it is an extremely important one. Confident consumers spend more money, which is essential for the US economy to recover quickly. A nervous consumer is unlikely to spend so freely and will hold back the economic rebound leading to a more drawn-out recovery. 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.