The Australian dollar remains choppy and range-bound ahead major economic data

Dan Kitwood/Getty ImagesBit like the recent price action.
  • The Australian dollar remains choppy and range-bound. You can tell its summer in the northern hemisphere.
  • Australia’s jobs report for June will be released today. It’s probably increased in importance in recent months.
  • The data and central bank speakers calendar is quiet today.

The Australian dollar remains choppy and range-bound, falling in Asian and European trade on Wednesday before climbing sharply into the close.

The whippy price action is not all that unusual, or unexpected, given many in the northern hemisphere are currently on holidays at present.

Here’s the scoreboard as at 7am in Sydney.

AUD/USD 0.7396 , 0.001 , 0.14%
AUD/JPY 83.45 , 0.06 , 0.07%
AUD/CNH 4.9897 , 0.0253 , 0.51%
AUD/EUR 0.6353 , 0.0017 , 0.27%
AUD/GBP 0.5657 , 0.0024 , 0.43%
AUD/NZD 1.0881 , -0.0008 , -0.07%
AUD/CAD 0.9739 , -0.0005 , -0.05%

After falling to a two-week low of .7340 in early European trade, coinciding with the offshore Chinese yuan tumbling to the lowest level in a year, the AUD/USD did an abrupt U-turn when US markets opened, ripping higher on a rebound in US stocks and strength in crude oil prices.

You could add weak volumes as another factor behind the whippy, largely-meaningless, price action.

In the end the AUD/USD closed the session at .7397.

Investing.comAUD/USD Hourly Chart

The Aussie lagged the moves seen in other commodity currencies such as the Canadian and New Zealand dollars. It did perform better against the euro and British pound, especially the latter which was weighed down by a soft inflation report for June.

Turning to the day ahead, the Aussie’s fascination with movements in the Chinese yuan looks set for a temporary reprieve with the release of Australia’s June jobs report at 11.30am AEST.

This report has undoubtedly increased in importance in recent months. This 10-second guide explains why.

Outside of Australia, Japan will also release trade figures for June at 9.50am AEST.

Given the quiet data calendar, it’s likely that the performance of Chinese financial markets will prove influential on the Aussie once again following the jobs report.

Later in the day, data highlights include UK retail sales along with jobless claims and Philly Fed manufacturing survey in the United States.

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