The Australian dollar is stuck in a range

  • The Australian dollar rose modestly on Friday, helped by renewed US-Sino trade optimism and weakish US economic data.
  • The AUD/USD had traded in a one cent range since early March./strong>
  • There’s very little on the economic calendar on Monday.

The Australian dollar rose modestly on Friday, supported by optimism towards US-Sino trade negotiations and softer-than-expected US economic data which weighed upon the greenback.

Those moves have largely been sustained in early trade on Monday.

Here’s the scoreboard at 8am in Sydney.

AUD/USD 0.7086 , -0.0001 , -0.01%
AUD/JPY 78.99 , -0.02 , -0.03%
AUD/CNH 4.7562 , -0.0011 , -0.02%
AUD/EUR 0.6257 , -0.0002 , -0.03%
AUD/GBP 0.5328 , -0.0005 , -0.09%
AUD/NZD 1.0345 , -0.0007 , -0.07%
AUD/CAD 0.9442 , -0.0007 , -0.07%

Most of the uplift in the AUD/USD on Friday occurred as Chinese markets opened, seeing the AUD/USD rise back towards the .7100 level as reports emerged that officials from the US and China had made “substantive progress on trade talks” in recent weeks.

That news, helping to lift risk appetite among investors, helped to keep the AUD/USD supported on dips during the session.

Mixed US economic data also helped the Aussie’s cause, seeing US bond yields and the greenback pullback a touch.

However, as seen in the chart below, the AUD/USD, from a longer-term perspective, has done very little recently, trading in a thin one cent range since the start of March.

AUD/USD Hourly Chart

Whether that range is broken today will likely be driven by headlines or technicals given a lack of first-tier economic data releases on Monday.

Japanese trade and industrial production, along with non-oil exports from Singapore, are the headline acts in Asia, although its questionable as to whether there’ll be much reaction in financial markets.

Eurozone trade data, along with NAHB home builder confidence in the United States, will round off what will likely be a quiet start to the week for currency markets.