The Australian dollar is looking rock solid

Photo by Michael Dodge/Getty Images
  • The Australian dollar put in a mixed performance on Thursday.
  • It was caught in the cross-currents of renewed US dollar strength and improved investor risk appetite.
  • China will release trade data for March today, including its trade surplus with the United States.

The Australian dollar had a quiet session on Thursday, paying little attention to the wild gyrations in stocks.

Here’s the scoreboard showing the Aussie’s mixed performance. It’s from 7am in Sydney.

AUD/USD 0.7754 , 0 , 0.00%
AUD/JPY 83.23 , 0.43 , 0.52%
AUD/CNH 4.8670 , 0.0029 , 0.06%
AUD/EUR 0.6289 , 0.002 , 0.32%
AUD/GBP 0.5450 , -0.0019 , -0.35%
AUD/NZD 1.0510 , -0.0025 , -0.24%
AUD/CAD 0.9758 , 0.0006 , 0.06%

The Aussie took a backseat to movements in other major pairs during the session.

The main theme was a renewed bout of US dollar strength, something that was assisted by a weaker euro and noticeable lift in investor risk appetite on Thursday.

The euro was hurt by increased unease among ECB policymakers about its recent strength, along with a weak eurozone industrial production report for February.

Along with the weaker euro, the other key theme for the session was a sharp improvement in investor risk appetite, sending the Japanese yen sharply lower against all major crosses, including the Aussie.

A softening in tone towards possible airstrikes in Syria from US President Donald Trump, along with signs that US trade policy may be shifting towards adopting a more open approach, helped to boost stocks and US bond yields, further underpinning the US dollar.

As a result, the AUD/USD was caught in the cross-currents, trading in a thin trading range throughout the session.

AUD/USD Hourly Chart

Turning to the day ahead, there’s a few events out there likely to interest traders.

For one, China will release trade data for March at some point around 1pm AEST. Unfortunately, there’s no scheduled time for the data to hit, much to the disappointment of traders and journalists across the Asian region looking to firm up Friday lunch plans.

The Reserve Bank of Australia (RBA) will also release its semiannual Financial Stability Review at 11.30am AEST. It’s unlikely to be market moving, but it is an interesting read for those who have the time.

Later in the day, data highlights include CPI from Germany and Spain, Eurozone trade along with JOLTS job openings and the University of Michigan consumer confidence report from the United States.

On the central bank front, FOMC members Rosengren, Bullard and Kaplan will also be in action.