Westpac IQ

Friday edition: analysis and forecasts for this week's key releases.

Monday re-issue edition: analysis and forecasts for this week's key releases.

Friday edition: analysis and forecasts for this week's key releases.

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As Australian consumers and businesses become increasingly connected to the global economy, advances in data, technology and customer insights are reshaping foreign exchange. The result is a more relevant customer experience and, ultimately, greater confidence when transacting across borders.

The Australian dollar finished another week on the front foot, closing on the 0.72-handle for the first time since early May. While a stronger than expected US jobs report briefly supported the US dollar Friday night, most of that move quickly faded. The week ahead brings several RBA speaking engagements, local sentiment surveys and important US inflation data that will decide whether the Fed hikes rates 16 Sep.

It was a "good week" for the Australian dollar, the currency climbing to fresh leg highs of 0.7208 against the US dollar Friday night and reaching multi-year highs against several major currencies. However, the move came unstuck later Friday after Fed Chair Kevin Warsh delivered a hawkish speech at the Jackson Hole symposium, reinforcing the Federal Reserve's commitment to returning inflation to target. Looking ahead, markets face a busy week, including Australia Q2 GDP and the RBNZ meeting (Wed), speeches from RBA Assistant Governor Brad Jones and Fed Governor Christopher Waller (Thur), and US non-farm payrolls (Fri).

The Australian dollar's steady climb became a sprint late last week, jumping 0.85% on Friday to fresh current leg highs near 0.7180. What had been a measured grind higher accelerated more emphatically, with the Australian dollar moving into the high 0.71s in just a few sessions. Unlike Jan/Feb's rallies, this move is not being driven by a hawkish RBA story or stretched positioning. Instead, support is coming from a weaker USD backdrop, rising gold prices, strength across Asian currencies and Australia's mining dividend season. A busy week lies ahead, with Australia's July CPI, RBA August meeting minutes and key GDP partials due, although they are likely to play second fiddle to Fed Chair Warsh's keynote speech at the annual Jackson Hole Symposium.