The Australian dollar is bouncing

Jeff J Mitchell/Getty Images

The Australian dollar is rising in early Asian trade on Thursday, continuing the choppy price action seen this week.

Here’s the scoreboard as at 8.20am AEDT.

AUD/USD 0.7678 , 0.0034 , 0.44%
AUD/JPY 87.44 , 0.30 , 0.34%
AUD/CNH 5.0911 , 0.016 , 0.32%
AUD/EUR 0.6621 , 0.0025 , 0.38%
AUD/GBP 0.5853 , 0.0048 , 0.83%
AUD/NZD 1.1030 , -0.0043 , -0.39%
AUD/CAD 0.9771 , 0.0009 , 0.09%

After opening the session at .7644, the AUD/USD ground higher during the session, benefiting from US dollar weakness, dip buying at .7630 and a solid Chinese trade report for October.
Of all the factors, renewed doubts over the prospect for near-term US tax reform — acting to soften the US dollar against higher-yielding currencies — contributed most to the Aussie’s bounce.

“There’s been more wire chatter about Republicans debating their tax bill, and the news arising from discussions doesn’t look hopeful for an early resolution,” said David de Garis, economist at the National Australia Bank.

As a result, the AUD/USD currently sits at .7678, up 0.44% for the session.

AUD/USD Hourly Chart

The Aussie rose against all major crosses aside from the New Zealand dollar which found support from signs that the Reserve Bank of New Zealand is inching towards raising interest rates.

Turning to the session ahead, it looks set to be a quiet one in Asia with only a smattering of second-tier data releases scheduled.

In Australia, markets will receive housing finance data for September at 11.30am AEDT. That will be followed a hour later by Chinese consumer and producer price inflation figures for October.

Neither is likely to generate any volatility across markets.

In Europe, central bank speeches dominate with ECB members Coeure, Mersch, Constancio, Villeroy de Galhau and Lautenschlaeger all in action. The European Commission will also release its latest set of economic forecasts.

On the data front, German trade data for September and US initial jobless claims are the headline acts.

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