The Australian dollar is under pressure

Marty Melville/AFP/Getty Images

The Australian dollar continues to slide, weighed down by a combination of higher US bond yields, hawkish commentary from the US Federal Reserve and firmer US economic growth.

Here’s the scoreboard as at 7.25am AEDT.

AUD/USD 0.7577 , -0.0017 , -0.22%
AUD/JPY 84.71 , 0.06 , 0.07%
AUD/CNH 5.0102 , -0.0072 , -0.14%
AUD/EUR 0.6389 , -0.0023 , -0.36%
AUD/GBP 0.5645 , -0.0047 , -0.83%
AUD/NZD 1.0996 , -0.0007 , -0.06%
AUD/CAD 0.9739 , 0.0009 , 0.09%

At .7577, the AUD/USD is trading at a one-week low, sitting just above the low of .7553 struck earlier in the session.

Elias Haddad, senior currency strategist at the Commonwealth Bank, said the Aussie was undermined by a combination of higher US bond rates, stronger US economic growth and further hawkish commentary from the US Federal Reserve.

“[The] US dollar remains firm and US-10 ten year Treasury yields rose by about 5 basis points to 2.385%, supported by solid US economic growth and constructive comments from Fed Chair Janet Yellen,” he said.

“US Q3 GDP growth was revised higher to an annualised quarterly rate of 3.3% the — fastest pace in three years — from an initial estimate of 3% largely because of stronger business investment spending.

“Meanwhile, Yellen reiterated the US economic expansion ‘is increasingly broad based across sectors’ and ‘inflation will move back to 2% over the next year or two’.”

That weighed on the Aussie, extending the modest slide seen in recent days.

AUD/USD Hourly Chart

Against the crosses, the Aussie’s most pronounced move came against the UK pound which jumped following reports that the UK and EU have settled on the cost of the so-called Brexit “divorce bill”, putting the figure at around 50 billion euros, well below the level expected.

The euro also gained following the release of stronger-than-expected Eurozone consumer confidence and German CPI.

Turning to the day ahead, there are plenty of data releases both in Australia and abroad for traders to navigate.

Domestically, markets will receive private sector business capital expenditure (CAPEX), new home sales, building approvals and private sector credit figures from the Reserve Bank of Australia (RBA).

Out of all the data releases, the quarterly CAPEX report out at 11.30am AEDT carries the most potential to move the Aussie.

This 10-second guide has more on what to look out for.

Regionally, China will release its official manufacturing and non-manufacturing PMI reports for November at midday AEDT.

The Bank of Korea will also hold its latest monetary policy meeting.

Later in the session, data highlights include retail sales and unemployment data from the eurozone and Germany along with US personal income and expenditures data, including the key PCE figure, the US Fed’s favoured inflation measure.

OPEC will also meet in Vienna with an extension of production cuts beyond March 2018 seen as likely.

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