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The Australian dollar hit a 9-month high overnight

Photo by Keystone/Getty Images

The Australian dollar rocketed to a fresh nine-month high in overnight trade, rising to .7707 before easing into the New York close.

As on Wednesday, the rally was more about US dollar weakness than Australian dollar strength with markets continuing to digest dovish remarks from US Federal Reserve chair Janet Yellen in a speech delivered in New York on Tuesday.

Currently the AUD/USD fetches .7671, up a further 0.6% on Tuesday’s closing level. Over the past two sessions the Aussie has rallied 1.7%, extending it climb from January 15 to 12.4%.

It is on track to post its highest close since June 30 last year.

Looking ahead to Thursday’s Asian trading session, there are plenty of data releases but few that will likely prove to be market moving.

Domestically, HIA new home sales and private sector credit figures for February will be released.

With little on the domestic front to rattle the status quo, Joseph Capurso, currency strategist at the CBA, suggests that a series of upcoming US data releases — including non-farm payrolls — will likely be the next area of focus for markets.

“In the near term, AUD will be subject to USD moves, particularly with the release of US ISM, non-farm payrolls and earnings,” said Capurso in his morning note.

Even if the data comes in above market consensus, Capurso believes that the pull back in the Aussie will be shallow, and fleeting.

“We expect dips in AUD to be shallow. We expect the AUD to remain supported and lift because we believe commodity prices are in the process of bottoming out,” he says.

Yesterday the CBA made a series of upgrades to its AUD/USD forecasts, predicting that the Aussie will finish 2016 buying 78 cents before pushing back to 80 cents by th emiddle of next year.

Here’s the current Aussie dollar scoreboard, as at 7.40am AEDT.

  • AUD/USD 0.7671 , 0.0046 , 0.60%
  • AUD/JPY 86.23 , 0.31 , 0.36%
  • AUD/CNH 4.9652 , 0.0152 , 0.31%
  • AUD/EUR 0.6763 , 0.0011 , 0.16%
  • AUD/GBP 0.5333 , 0.0034 , 0.64%
  • AUD/NZD 1.1061 , -0.0059 , -0.53%

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