The Australian dollar remained under pressure in overnight trade, briefly dipping below the US 76 cent level before moving higher towards the close.
As at 7.45am AEDT, the AUD/USD buys .7615, having fallen to as low of .7590 midway through the US session.
The continued weakness in the Aussie was a result of strong US economic data being released during the session, something that helped to lift US bond yields and supported the US dollar. Another spike in crude prices, along with a rally in US stocks, helped to minimised the losses.
After a flurry of data releases on Wednesday, the economic calendar slows sharply on Thursday, hinting that it’ll be a quiet day for the Aussie ahead of tomorrow’s key US non-farm payrolls report.
“The Thursday before a Friday night US payrolls ritual is usually a pretty dead one for markets. Looking at today’s economic calendar, it’s hard to argue that today will run counter to form,” said Ray Attrill, global co-head of FX strategy at the National Australia Bank.
“Australia’s August trade data, the ECB’s account of its 8 September meeting and weekly US jobless claims are really all that’s on offer.”
None, including Australia’s trade report, will likely be influential on movements in the Aussie in the absence of an outlier.
“The AUD proved sensitive to yesterday’s better than expected 0.4% rise in retail sales, so might show some response for the trade figures,” says Attrill. “It will take something much different to [a deficit of] $2-2.5bn to have material market impact.”
The NAB’s economics team is looking for a deficit of $2.1 billion, slightly less than market consensus that’s looking for a $2.3 billion deficit.
With volumes likely to be thin as traders await tomorrow’s US non-farm payrolls report, position squaring, movements in crude oil futures and the swings in USD/JPY are all likely to be influential on the Australian dollar today.
Here’s the current scoreboard as at 7.45am AEDT.
- AUD/USD 0.7615 , -0.0004 , -0.05%
- AUD/JPY 78.82 , 0.44 , 0.56%
- AUD/CNH 5.1010 , 0.0013 , 0.03%
- AUD/EUR 0.6794 , -0.0004 , -0.06%
- AUD/GBP 0.5974 , -0.0011 , -0.18%
- AUD/NZD 1.0603 , 0.0039 , 0.37%