The Australian dollar put in a mixed performance on Tuesday, pushing higher against the greenback but losing ground against the euro and UK pound.
Here’s the scoreboard as at 7.45am AEDT.
AUD/USD 0.7777 , 0.0025 , 0.32%
AUD/JPY 87.42 , 0.09 , 0.10%
AUD/CNH 5.1064 , -0.0211 , -0.41%
AUD/EUR 0.6582 , -0.002 , -0.30%
AUD/GBP 0.5887 , -0.0011 , -0.19%
AUD/NZD 1.0995 , 0.0026 , 0.24%
AUD/CAD 0.9734 , 0.0005 , 0.05%
Having started the session buying .7752, the AUD/USD drove higher over the course of the session, benefiting from a strong Australian business confidence report for September, a rebound in commodity prices and renewed concerns about the ability for Donald Trump to deliver US taxation reform.
The latter undermined the US dollar against most major currency pairs, especially the euro. A strong German trade report for August, coupled with hawkish rhetoric from ECB policymakers in recent days, helped to spur on buying in the common currency, further undermining the greenback.
“The politics of the Trump tax plan continues to get murkier, this time the President and senior GoP Senator Corker having swapped barbs over recent days,” said David de Garis, economist at the National Australia Bank.
The UK pound also rose following the release of a strong industrial production data for August, including upward revisions to prior data.
At the margin the IMF’s decision to make modest upgrades to its global growth forecasts for this year and next may have assisted the Aussie’s gains on Tuesday, although stronger global growth had largely been factored in by markets before this announcement.
Turning to the session ahead, the Aussie looks set to endure another quiet session on Wednesday with no major data releases scheduled in Asia.
Domestically, the Westpac-MI consumer sentiment report for October will be released at 10.30am AEDT although it’s unlikely to cause any significant reaction in the Aussie.
Elsewhere there’s few releases of note across the broader Asia region.
Robert Kaplan, Dallas Fed President, will speak at 11am AEDT.
Later in the session, there’ll be interest on the release of the US Federal Reserve’s FOMC September meeting minutes, along with speeches from FOMC members Charles Evans and John Williams.
“To be frank, the market is really waiting on Friday’s CPI as the next key watch point, along with retail sales, including whether they were at affected by the hurricanes,” says de Garis.
Before those data reports arrive, markets will also receive JOLTS job openings from the United States along with inflation data from Spain today.
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