It was a topsy-turvy session for the Australian dollar on Wednesday, falling in Asia before recovering over the course of European and US trade.
In the end it looks set to close the session almost exactly where it started, a remarkable achievement given there was major economic data, an interest rate decision from the US Federal Reserve and continued concern surrounding the outcome of next week’s US election.
It was the latter that was responsible for much of the price action seen over the past 24 hours, with risk aversion towards a tightening in the polls undermining the US dollar, helping the Aussie to recover.
However, as the table below shows, the Aussie has actually lost ground on the crosses.
- AUD/USD 0.7658 , 0.0009 , 0.12%
- AUD/JPY 79.15 , -0.49 , -0.62%
- AUD/CNH 5.1830 , 0.0027 , 0.05%
- AUD/EUR 0.6901 , -0.0016 , -0.23%
- AUD/GBP 0.6227 , -0.002 , -0.32%
- AUD/NZD 1.0506 , -0.0137 , -1.29%
Looking ahead to Thursday trade in Asia, there’s plenty of economic data on tap both in Australia and in Asia, although non appears likely to generate a major move in the Aussie one way or another.
Domestically, we’ll get the Ai Group performance of services index for October at 9.30am AEDT with Australia’s trade report for September following soon after at 11.30am AEDT.
Though recent strength in Australia’s key commodity export prices has many predicting that a trade surplus will arrive in the months ahead, a deficit of $1.7 billion is expected today, down from $2 billion in August.
Elsewhere, markets will receive services PMI reports from China.
Later in the session, services PMI figures will arrive from the UK and US while the Bank of England will announce its November monetary policy decision at 11pm AEDT.
“With UK activity holding up, the Bank of England is expected to keep their powder dry with rates and QE on hold,” said David de Garis, senior economist at the NAB. “There’ll be as much interest in the Bank’s views on the economy and rates in their Quarterly Inflation Report.”