After several days of losses, the Australian dollar stabilised overnight with the AUD/USD closing Thursday’s session buying .7495, a level that it continues to oscillate around in early Asian trade this morning.
“The small lift in iron ore prices and easing financial market stress supported AUD”, wrote Elias Haddad, a currency strategist at the Commonwealth Bank, in his morning note.
Continuing the theme seen earlier this week, the domestic and regional data calendar is devoid of market moving events, something that will likely result in thin trading volumes and little movement over the course of the Asian session.
“It’s a very quiet local calendar today with the MNI Business Indicator China at 11:45, followed at midday by the Nikkei Japan Manufacturing PMI for July,” said David de Garis, senior economist at the NAB. “Also on the calendar is the kick-off the Finance and Central Bank Deputies G20 meeting in China, with a formal agenda planned between Chinese Premier Li Keqiang, the IMF’s Lagarde, and the BOE’s Carney, with a press conference from around 11:25am AEST.”
While there is always the potential for a surprise, neither the G20 meeting nor data calendar is likely to interest traders. Next week is stacked with huge market-moving events, and many are likely to use the opportunity to take a breather.
Chris Weston, chief markets strategist at IG Markets in Melbourne, perhaps best sums up what to expect from Friday’s trading session.
“The backdrop is thus set for a fairly low volume day and this is the sort of conditions where the brokers (and traders) will tend to take extended lunchbreaks and catch up with clients,” he notes.
Seemingly there may be more liquidity at bars and restaurants rather than in the markets. We’ll see.
Here’s the Aussie dollar scoreboard as at 9.15am AEST.
- AUD/USD 0.7498 , 0.0003 , 0.04%
- AUD/JPY 79.33 , 0.03 , 0.04%
- AUD/CNH 5.0051 , 0.0025 , 0.05%
- AUD/EUR 0.6800 , 0.0003 , 0.04%
- AUD/GBP 0.5669 , 0.0006 , 0.11%
- AUD/NZD 1.0705 , -0.0002 , -0.02%
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