It’s been a quiet start for the week for the Australian dollar in Asia.
Here’s the early scoreboard:
- AUD/USD 0.7451 , 0 , 0.00%
- AUD/JPY 85.87 , -0.01 , -0.01%
- AUD/CNH 5.1598 , 0.0009 , 0.02%
- AUD/EUR 0.7070 , 0.0014 , 0.20%
- AUD/GBP 0.5924 , 0.0003 , 0.05%
- AUD/NZD 1.0441 , 0.0007 , 0.07%
With no major economic data scheduled at home, regionally or in European and North American trade later in the session, Ray Attrill, global co-head of FX strategy at the NAB, says currency market movements today will likely be driven by crude oil futures following an agreement between OPEC and non-OPEC nations reached over the weekend to curb production levels in 2017.
“News to be absorbed in Asia this morning is that OPEC and some non-OPEC producer hammered out a deal on Saturday culminating in Saudi Arabia signalling its intent to cut oil production by more than agreed at OPEC’s November 30 meeting,” he says.
“The news is set to lift crude prices in Asia and which in turn should further support inflation break-evens and nominal bond yields and, if so, the US dollar.”
Outside of crude futures, movements in regional stocks, iron ore futures in China, the USD/JPY and USD/CNY are also likely to be influential on the Aussie’s performance on Monday.
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