The Australian dollar is looking resilient despite a lift in geopolitical concerns

Photo by Joe Mann / AFP / Getty Images
  • The Australian dollar rose against the greenback on Thursday despite a modest lift in risk aversion.
  • Geopolitics once again dominated, weighing on the US dollar.
  • The data calendar is quiet in Asia with all the big events arriving in the second half of the session.

The Australian dollar managed to climb against the greenback on Thursday despite a modest lift in risk aversion during the session.

However, it finished mixed against the crosses.

Here’s the scoreboard at 7am in Sydney.

AUD/USD 0.7577 , 0.0018 , 0.24%
AUD/JPY 82.78 , -0.42 , -0.50%
AUD/CNH 4.8293 , 0.0103 , 0.21%
AUD/EUR 0.6464 , 0.0002 , 0.03%
AUD/GBP 0.5661 , -0.0002 , -0.04%
AUD/NZD 1.0932 , 0.0007 , 0.06%
AUD/CAD 0.9752 , 0.0054 , 0.56%

The main theme on Thursday was broad-based US dollar weakness, driven by news that Donald Trump has decided his cancel his summit with North Korean leader Kim Jong Un scheduled to take place in Singapore on June 12.

Renewed trade tensions may have also contributed to the greenback’s weakness during the session.

“[Trump] warned that he might impose car tariffs of 25% on all US car imports, ostensibly on national security grounds,” said David de Garis, Economist at the National Australia Bank.

Those announcements weighed on stocks as well as US bond yields, helping to boost other major currencies, including the Aussie.

Investing.comAUD/USD Hourly Chart

Better reflecting the lift in risk aversion, the AUD/JPY finished the session down 0.5%. The Aussie also lost ground against the safe-haven Swiss franc.

It managed to rally against the Canadian dollar, however, as weakness in crude prices led to selling in the Loonie.

The British pound was also supported by the release of stronger-than-expected UK retail sales for April.

Turning to the day ahead, the data calendar is light, likely ensuring a quiet session in the absence of any unexpected headlines.

Japan will release Tokyo consumer price inflation data for May at 9.30am AEST. That will be followed later in the session by business confidence figures from Germany, the second reading of Q1 GDP from the UK along with durable goods orders and University of Michigan consumer sentiment index in the United States.

On the central bank front, US Fed Chair Jerome Powell and Bank of England Governor Mark Carney will also deliver speeches.

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