The Australian dollar continues to drift above 76 cents

Amory Ross Team Alvimedica GettyImages

The Australian dollar softened in overnight trade, opening Wednesday’s session just above the 76 cent level.

The AUD/USD rose to as high as .7655 in European trade before reversing over the course of the US session, eventually closing at .7615.

The pullback corresponded with a bullish new home sales report in the US for July with sales jumping 12.4% to the highest level seen since 2007.

A bounce in the crude oil price based on rumours Iran may be warming to a potential production freeze at OPEC’s upcoming informal meeting was largely ignored by Aussie dollar traders.

As at 7.45am AEST, the AUD/USD currently buys .7613.

AUD/USD 5-Minute Chart

Turning to Wednesday trade in Asia, there is a scattering of domestic data releases to contend with although none that look set to move the Aussie definitively one way or another.

Australian Q2 construction work done will be released at 11.30am AEST, along with skilled vacancies for July earlier in the session.

“Australia’s Construction Work Done (CWD) for the June quarter is probably the meatiest of today’s local regional releases,” said David de Garis, senior economist at the NAB.

“NAB and the consensus are picking a 2% net decline for this series as rising dwelling investment and continued likely large falls in resource-centric engineering construction compete for the prevailing influence.

“This is the second of the quarterly national accounts partials after June quarter retail trade volumes and gives us a good look into the status of fixed capital expenditure for the June quarter ahead of GDP in a fortnight,” he adds.

Later in the session, German Q2 GDP will be released along with building permits, house prices and existing home sales figures form the US. The US EIA will also release weekly crude inventory data, something that has a tendency to produce outsized market moves in crude oil futures and, as a consequence, the Aussie.

Given the quiet economic calendar in Asia, movements in stocks, crude oil futures and the USD/JPY — often influential on the broader US dollar index in Asia — will likely dictate movements in the Aussie.

Here’s the current Australian dollar scoreboard as at 7.45am AEST.

  • AUD/USD 0.7613 , -0.0002 , -0.03%
  • AUD/JPY 76.31 , 0.01 , 0.01%
  • AUD/CNH 5.0668 , -0.0006 , -0.01%
  • AUD/EUR 0.6734 , 0.0002 , 0.03%
  • AUD/GBP 0.5767 , 0 , 0.00%
  • AUD/NZD 1.0434 , 0.0004 , 0.04%

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