The Australian dollar endured a quiet session overnight, range trading throughout European and North American trade as softer commodity prices were offset by a raft of uninspiring US economic data.
The AUD/USD traded between .7236 to .7270, eventually closing the US session buying .7246, a level it’s currently meandering around in early Asian trade.
As was the case on Monday, there are few catalysts expected to provide substantial movement in the Aussie dollar today, something David de Garis, senior economist at the NAB, discussed in his morning note.
“Not a massive day as far as local and regional data is concerned with NZ trade and residential building reports unlikely to ruffle market feathers too much at all,” wrote de Garis.
“The weekly AU ANZ-Roy Morgan consumer sentiment might be worth a look at 9.30am AEDT to see whether last week’s major bank mortgage rate rises struck a worrying chord with consumers. We also have Chinese industrial profits (L:-8.8%), not a market sensitive indicator, but some segments of Chinese industry have been at the forefront of the slowdown and thus headwinds for industrial earnings.”
Although not a traditional market mover, the ANZ-Roy Morgan weekly consumer sentiment print will be eyed when it is released later on this morning. Any sharp deterioration in sentiment as a result of the Commonwealth Bank, ANZ and NAB joining Westpac in raising variable mortgage rates for their customers may bolster expectations that the RBA will cut interest rates when it next meets on November 3.
The household sector, contributing the largest proportion to Australian economic growth through private consumption, needs to remain confident in order to help the economic rebalancing currently underway in Australia.
The Aussie dollar scoreboard is found below.
- AUD/USD 0.7238 , -0.0008 , -0.11%
- AUD/JPY 87.64 , -0.09 , -0.10%
- AUD/CNY 4.5974 , -0.005 , -0.11%
- AUD/EUR 0.6548 , -0.0005 , -0.08%
- AUD/GBP 0.4715 , -0.0005 , -0.11%
- AUD/NZD 1.0663 , -0.0001 , -0.01%