The Australian dollar bounced overnight after hitting a 3-week low

Photo by Ronald Martinez/Getty Images

The Australian dollar staged an abrupt about-face in overnight trade, reversing losses seen in Asia to close higher for the session.

From a low of .7580 struck in Asia, the lowest level seen since August 4, the AUD/USD screeched higher over the European and US sessions, hitting a high of .7639 before eventually closing at .7624.

According to Rodrigo Catril, currency strategist at the NAB, the reversal in the Aussie was more to do with the US dollar rather than the Aussie itself.

“The rise in the USD and short dated US treasury yields on the back of Fed vice-chair Fisher’s comments over the weekend have been partly unwound in the overnight session amid lack of new news and thin holiday trading,” he wrote in a research note released on Tuesday morning.

As at 7.35am AEST, the AUD/USD currently fetches .7628, rallying in sympathy with the New Zealand dollar following a speech delivered by Reserve Bank of New Zealand governor, Graeme Wheeler, earlier this morning.

AUD/USD 5-Minute Chart

As was the case on Monday, there is absolutely nothing on the domestic data docket that appears likely to sway the Aussie one way or another.

Regionally, Bank of Japan governor Haruhiko Kuroda will speak at 2pm AEST while the flash Japan manufacturing PMI report from Markit will be released two hours earlier at midday AEST.

Neither release is likely to generate market volatility, including in the Aussie.

With nothing on the domestic or regional front for markets to mull over, the performance of regional stocks, commodity futures and movements in the USD/JPY — often influential on the broader US dollar index in Asia — will yet again be influential on movements in the Aussie today.

Here’s the current scoreboard, as at 7.35am AEST.

  • AUD/USD 0.7628 , 0.0011 , 0.14%
  • AUD/JPY 76.5 , 0.09 , 0.12%
  • AUD/CNH 5.0794 , 0.0061 , 0.12%
  • AUD/EUR 0.6737 , 0.0009 , 0.13%
  • AUD/GBP 0.5805 , 0.0009 , 0.16%
  • AUD/NZD 1.0468 , -0.0006 , -0.06%

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