The Australian dollar rally faltered on Friday, seeing it give back some of the hefty gains of the previous four sessions.
While there were a number of US Fed speakers active on Friday, along with another substantial decline in crude oil futures, there was no one catalyst to explain the Aussie’s sudden reversal of fortune.
Perhaps it was the 3%-plus gain over the previous five sessions that best explains the weakness. Profit-taking, essentially.
In the wash-up, the AUD/USD finished the week buying .7618, down 0.31% on Thursday’s closing level. Over the week it gained 1.74%.
It currently trades at .7613 as at 7.50am AEST.
After a busy period last week, the economic data calendar slows to a crawl in the days ahead, with Monday’s session in Asia no exception.
It’s tumbleweed territory. Nothing. Nada. Not a thing looks set to move the broader markets, including the Aussie.
Most investors will probably take the chance to cool their heels ahead of the first US Presidential debate that will arrive at 11am AEST tomorrow.
In the meantime, the usual culprits that markets turn to for direction on slow data days — crude oil futures, USD/JPY and the USD/CNH — will likely be influential on the Aussie over the course of Monday trade.
Here’s the current Aussie dollar scoreboard.
- AUD/USD 0.7613 , -0.0005 , -0.07%
- AUD/JPY 76.89 , -0.02 , -0.03%
- AUD/CNH 5.0846 , 0.0002 , 0.00%
- AUD/EUR 0.6778 , 0.0002 , 0.03%
- AUD/GBP 0.5873 , -0.0001 , -0.02%
- AUD/NZD 1.0525 , 0.003 , 0.29%
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