After a wild ride on Friday, the Australian dollar looks set to tread water today

Photo by Agency-Animal-Picture/Getty Images

The Australian dollar has opened the new week fractionally higher, finding some relative stability following a wild ride on Friday evening after the release of the US non-farm payrolls report for August.

In response to the weak payrolls figure and disappointing wage result, the AUD/USD traded up to as high as .7616 in the immediate aftermath of the report before giving back most of the gains in the latter parts of the US session.

Given August has a history of disappointing for payrolls growth, along with the timing of the survey which indicated that weak wage growth was a strong possibility, it suggests that the outcome has been largely discounted by markets. Certainly the price action suggests so.

It eventually closed the week buying .7570, a figure that it is continuing to oscillate around this morning in early Asia trade.

After a wild ride on Friday evening, seen in the five-minute chart above, Monday looks set to be a far calmer session for the Aussie as investors await the release of major economic data, along with the RBA’s September monetary policy meeting, later in the week.

US markets are also closed for the Labor Day holiday, ensuring that there’ll be a general lack of interest.

Domestically, traders will receive the Ai Group’s Performance of Services Index, monthly job ads from the ANZ, along with Australian Q2 gross company profits and inventory data, two further inputs that will feed into Australian GDP, released on Wednesday.

None are likely to be overly market moving.

On the regional front, markets will receive a raft of services PMI reports for September, including from China. The G20 meeting will also wrap up with an official communique arriving at some point during the session.

Unless it is accompanied by a financial crisis, markets have become accustomed to ignoring the events of the G20. It would be more more of a shock if the communique moved markets, rather than if it didn’t.

Here’s the current Australian dollar scoreboard as at 7.45am AEST.

  • AUD/USD 0.7568 , -0.0002 , -0.03%
  • AUD/JPY 78.74 , 0.13 , 0.17%
  • AUD/CNH 5.0680 , 0.0048 , 0.09%
  • AUD/EUR 0.6784 , 0.0005 , 0.07%
  • AUD/GBP 0.5689 , 0.0005 , 0.09%
  • AUD/NZD 1.0383 , 0.0033 , 0.32%

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