The Australian dollar continues to push higher

Photo: Getty/Cameron Spencer

It was a topsy-turvy session for the Australian dollar overnight, initially jumping to a two-week high in Europe before sliding lower in US trade.

The AUD/USD currently trades at .7638, having closed Thursday’s session buying .7642.

“AUD/USD lifted to touch a fresh two-week high of 0.7675 in overnight trade,” said Richard Grace, chief currency strategist at the Commonwealth Bank, in his morning note.

“A softer USD post the September FOMC meeting, and the virtual certainty of no interest rate rise by the Fed until mid-December, has kept the USD on the back foot, and helped generate a rally in industrial metal prices and global equity markets, and a further 3bpt decline in U.S. ten year bond yields to 1.61%.”

With no obvious catalyst and having rallied by 2.5% already this week, it’s likely that some profit-taking contributed to the late reversal.

AUD/USD Hourly Chart

After a whirlwind couple of days, Friday’s economic data calendar is about as boring as it gets, something that will probably be welcomed after a hectic week.

There’s absolutely no market-moving events to speak of, at least in Asia.

If you’re really desperate, the September flash manufacturing PMI report for Japan will be released at 10.30am AEST, but I’m comfortable in saying that it won’t move the Aussie one iota.

Later in the session markets will also receive flash manufacturing PMI reports for the Eurozone, Germany, France and US, the latter taking on greater significance than normal given the ugly ISM manufacturing PMI report released for August.

Alongside that data, markets will also hear from three US Federal Reserve governors during the US session — as if we hadn’t heard enough from the Fed this week.

Harker, Mester and Lockhart will all speak at a conference dubbed the “Fed’s role in our communities”. Mester is the only FOMC voter this year, likely ensuring her speech will get most attention, especially as she dissented at the last FOMC meeting, arguing for the need for higher rates.

Here’s the Aussie dollar scoreboard as at 7.50am AEST. Enjoy your Friday.

  • AUD/USD 0.7638 , -0.0004 , -0.05%
  • AUD/JPY 76.98 , 0.00 , 0.00%
  • AUD/CNH 5.1024 , -0.0034 , -0.07%
  • AUD/EUR 0.6814 , -0.0004 , -0.06%
  • AUD/GBP 0.5839 , -0.0004 , -0.07%
  • AUD/NZD 1.0442 , 0.0001 , 0.01%

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