For the third session in a row, the Australian dollar has closed just above the 76 cent level — .7615 on Tuesday, .7612 on Wednesday and .7615 on Thursday.
Keeping with the price action seen over much of the past week, the AUD/USD maintained a tight range overnight, trading between .7600 and .7640 throughout US and European trade.
Everyone, including Australian dollar traders, is waiting for US Federal reserve chair, Janet Yellen, to speak at the Jackson Hole Symposium later on this evening, hoping that she’ll provide some impetus to markets one way or another.
While not everyone shares this view, Elias Haddad, senior currency strategist at the Commonwealth Bank, believes that Yellen will deliver a dovish speech at the Symposium, doing little to alter current market expectations on interest rates.
“The topic of her speech suggests she will focus on what policy options the FOMC have available in the future in response to a downturn,” says Haddad.
“This could disappoint market participants looking for strong signals about a near-term increase in the Funds rate. As such, Yellen’s speech may be perceived as dovish, relative to the market expectations and weigh on the USD.”
Yellen’s speech will arrive at midnight AEST. There will be no accompanying Q&A section.
Before that event, there’s next to nothing to drive direction in the Aussie. The only major event of note is the release of Japanese CPI data for July at 9.30am AEST, although it’s unlikely to generate any significant volatility in markets.
Elsewhere the cupboard is bare, with more interest likely to be on the lunch menu rather than what’s happening in markets.
Here’s the Aussie dollar scoreboard as at 7.35am AEST.
- AUD/USD 0.7611 , -0.0004 , -0.05%
- AUD/JPY 76.51 , -0.03 , -0.04%
- AUD/CNH 5.0744 , -0.0029 , -0.06%
- AUD/EUR 0.6744 , -0.0003 , -0.04%
- AUD/GBP 0.5771 , -0.0001 , -0.02%
- AUD/NZD 1.0426 , -0.0001 , -0.01%