- The AUD/USD has fallen for six consecutive sessions, the equal-longest losing steak since May 2015.
- The US dollar was supported by weakness in the euro on Thursday, rather than higher longer-dated US bond yields.
- There’s an unusually packed economic calendar on the way today.
The Australian dollar keeps on falling, dropping for a sixth consecutive session on Thursday.
That’s its equal-longest losing streak since May 2015.
Here’s the final scoreboard just before 7am in Sydney.
AUD/USD 0.7553 , -0.001 , -0.13%
AUD/JPY 82.54 , -0.21 , -0.25%
AUD/CNH 4.7789 , -0.0021 , -0.04%
AUD/EUR 0.6239 , 0.0021 , 0.34%
AUD/GBP 0.5427 , -0.0001 , -0.02%
AUD/NZD 1.0689 , -0.0005 , -0.05%
AUD/CAD 0.9722 , 0.001 , 0.10%
The AUD/USD daily chart below tells the recent story.
The pair has now lost 3.3% in just the past five days, extending its losses from late January to over 7%.
It also sits at the lowest level since mid-December.
As opposed to prior sessions where US bond yields drove broader currency market movements, the US dollar was propelled higher on Thursday by weakness in the Euro following the European Central Bank’s (ECB) April interest rate meeting.
“The USD index (DXY) is up 0.5% on the day, at the highest level since 12 January,” said Westpac Bank’s FX Strategy Team. “That rise was mostly due to EUR falling after the ECB decision, from 1.2210 to 1.2096, a four-month low.”
The ECB left monetary policy settings, along with the wording of its April statement, unchanged from that released in March.
“The tone of the press conference and Q&A was of caution and concern over the recent moderation in activity, despite their continued confidence in achieving their targets,” said Westpac.
The decline in the euro, reversing earlier strength, saw the US dollar rally against most major crosses despite a pullback in US 10-year bond yields which fell from 3.03% to 2.98%.
US 2-year yields did push marginally higher, possibly reflecting stronger-than-expected US labour market and trade data released during the session, rising to 2.49% from 2.47%.
Turning to the day ahead, there’s a plethora of major economic data releases scheduled around the world.
In Asia, Japan will release inflation figures from Tokyo along with national data on industrial production, retail sales, unemployment, housing starts and construction orders.
New Zealand will also release trade data for March while Australian Q1 producer price inflation will also arrive later in the session.
On the central bank front, the Bank of Japan will announce its April monetary policy decision, along with updated economic forecasts. There’s no scheduled time for the decision, although, based on recent form, it’s likely to arrive around 1pm AEST.
Later in the session, highlights data include Q1 GDP data from France, UK and US, Spanish inflation, German unemployment along with consumer confidence figures from the Eurozone and US.
It’s also a busy day for central bank speakers with Mark Carney of the Bank of England, Thomas Jordan of the Swiss National Bank and Mersch and Lautenschlaher of the ECB all scheduled to deliver speeches.