The Australian dollar is sliding ahead of huge day of economic data

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  • The Australian dollar sits at a three-week low, dragged lower by weakness in stocks and commodities on Wednesday.
  • Australian business capital expenditure figures will be released today — it’s been an Aussie dollar mover in the past.
  • Data highlights later in the session include US inflation and manufacturing PMI figures along with another appearance from Fed Chair Jerome Powell.

The Australian dollar fell further on Wednesday, succumbing to another late selloff in US stocks and weakness in commodity prices.

Here’s the scoreboard as at 7.55am AEDT.

AUD/USD 0.7765 , -0.0024 , -0.31%
AUD/JPY 82.83 , -0.75 , -0.90%
AUD/CNH 4.9118 , -0.0143 , -0.29%
AUD/EUR 0.6364 , -0.0001 , -0.02%
AUD/GBP 0.5640 , 0.0042 , 0.75%
AUD/NZD 1.0760 , -0.0003 , -0.03%
AUD/CAD 0.9967 , 0.0017 , 0.17%

At .7765, the AUD/USD currently sits at a three-week low, approaching the .7756 nadir hit on February 9. It traded as high as .7819 in Europe before reversing those gains and more over the course of North American trade.

Weakness in crude oil and iron ore markets contributed to the weakness, along with a late decline on Wall Street. Month-end currency flows may have also been a factor behind the late slide.

There was very little impact on the Aussie from economic data released during the session, including the second offering of US Q4 GDP which printed in line with expectations.

AUD/USD Hourly Chart

While the Aussie fell against the greenback, it rallied hard against the British pound on increased concern over the progress of Brexit negotiations.

Turning to the session ahead, it’s going to be another bumper session for economic data releases and events both domestically and abroad.

In Australia, the Ai Group’s manufacturing PMI report for February will be released at 8.30am AEDT. That will be followed 90 minutes later by CoreLogic’s monthly house price index, also for February.

Australia’s Q4 private sector capital expenditure report will be also be released at 11.30am AEDT. Of all the domestic data scheduled, this appears most likely to generate short-term volatility in the Aussie.

This 10-second guide has more on what to expect, including what parts of the report will likely move financial markets.

Regionally, New Zealand Q4 terms of trade, along with a raft of manufacturing PMI reports from Asia, including from China and Japan, will also be released.

Later in the session, the manufacturing PMI deluge will continue in Europe and US.

Accompanying those releases, markets will also receive UK consumer credit along with initial jobless claims, construction spending, personal income and expenditure data along with PCE price inflation from the United States.

Of all those releases, most interest will be on the PCE inflation figure given increased concern that price pressures are building, especially the core reading.

It’s expected to have risen 1.5% in the year to January, unchanged from the level report in December.

The ISM manufacturing PMI report could also be influential on market movements during the session.

On the Fed front, Chair Jerome Powell will appear before the US Senate Banking Committee following his outing earlier this week in front of house representatives.

If the form of his predecessors is anything to go by, it will likely be a regurgitation of what was previously communicated on Tuesday.

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