After closing at a 7-month high on Wednesday, the Australian dollar tumbled overnight, sliding over one per cent for the session.
A weak Australian jobs report for September — something that kicked off the selling yesterday — along with falling in sympathy with the euro following the ECB’s latest monetary policy meeting overnight, were the main factors behind the weakness in the Aussie yesterday.
A sharp reversal in the crude oil price also didn’t help.
The AUD/USD currently buys .7626, down 1.23% from Wednesday’s close. From the high of .7734 hit just before the release of Australia’s September jobs report, it has now fallen 1.4%.
Despite the ugly percentage decline, the reality is that the fall on Thursday has only taken the AUD/USD back to where it was trading on Tuesday, such has the strength of the Aussie’s rally been.
Looking ahead to Friday’s session, there’s few economic and data events that appear likely to move the Aussie in any forceful manner one way or another.
Regionally, Chinese new home price data for September will be released at 12.30pm AEDT, and appears the only likely candidate to generate volatility in the Aussie.
“Chinese property prices have recently shown signs of re-acceleration and today’s September report will show some further light on that,” said David de Garis, senior economist at the NAB.
“Further acceleration – should it occur – will only stoke fears that the Chinese authorities will take further steps to cool markets.”
With next to nothing to concentrate on in Asia — except the lunch menu — movements in crude futures along with the Japanese yen and Chinese yuan will likely influence oscillations in the Aussie.
Later this evening markets will also hear from Fed governor Powell and San Francisco Fed president John Williams.
Here’s the Aussie dollar scoreboard as at 7.45am AEDT.
- AUD/USD 0.7626 , -0.0095 , -1.23%
- AUD/JPY 79.3 , -0.56 , -0.70%
- AUD/CNH 5.1462 , -0.0544 , -1.05%
- AUD/EUR 0.6978 , -0.0057 , -0.81%
- AUD/GBP 0.6222 , -0.006 , -0.96%
- AUD/NZD 1.0599 , -0.007 , -0.66%