The top performing currencies this week help to demonstrate the power of technical support and central banks. It’s no surprise that the high-flying US dollar was on top but right behind it was the Australian dollar.

The main reasons AUD was able to hold up was an improvement in sentiment around coronavirus. The RBA decision also briefly lent support, despite Lowe warning that Q1 GDP was possible.

The final factor was that AUD/USD was springing from support levels at the start of the week. That gave bulls a way to manage risk and encouraged buyers.

The warning sign is that the pair peaked mid-week and broke that support today, at least tentatively. If the extension continues next week, the same technical buying support will quickly become selling pressure and this week’s AUD outperformance could be next week’s underperformance.