BUY THE DIP: The Australian dollar has been hoovered in Asia

Source: Fox broadcasting Company

Few other regions can lay claim to being kings of “buying the dip” than Asia, particularly when it comes to the Australian dollar.

As Europe and the US dragged the Aussie lower, Asia was there to lift it higher once again.

Tuesday has been no exception.

After bottoming below .7330 in US trade, it’s been nothing but one-way traffic for the Aussie, marching higher throughout the Asian session.

Brexit. Uncertainty. The Chinese yuan being set at the weakest level in nearly six years. Nope, not enough to deter Aussie dollar buyers traders today.

While there have been a number of factors that have underpinned the Aussie’s rise — surging iron ore futures and a strong Australian consumer confidence report to name two — it still doesn’t fully explain the strength.

Given that the US dollar has weakened across the board, including against the beleaguered British pound, one suspects that many are hoping for a positive outcome from the upcoming two-day EU leaders summit, beginning today in Brussels.

Optimism springs eternal, particularly in Asia.

As at 4.30pm AEST, the AUD/USD currently buys .7401, up 1.08% for the session.

And here’s how the Aussie has performed against the crosses. Again it’s roaring, ignoring the Kiwi, of course.

  • AUD/USD 0.7401 , 0.0079 , 1.08%
  • AUD/JPY 75.35 , 0.63 , 0.84%
  • AUD/CNH 4.9476 , 0.0543 , 1.11%
  • AUD/EUR 0.6686 , 0.0042 , 0.63%
  • AUD/GBP 0.5559 , 0.0022 , 0.40%
  • AUD/NZD 1.0456 , -0.0013 , -0.12%

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