The Australian dollar did little overnight, sitting pretty much where Asia left it Thursday afternoon this morning.
As at 7.45am AEST, the AUD/USD buys .7223, up 0.35% on Wednesday’s closing level.
It earlier traded as high as .7244, boosted by further strength in the crude oil price as Brent and WTI front-month futures both pushed above $50 a barrel in early European trade.
Both have subsequently moved lower, something the Aussie has largely ignored so far.
“While oil is technically lower overnight (Brent down 0.5% to $49.47) the recent moves higher have driven a rally in commodity linked currencies with the Norwegian Krone up 1%, the CAD up 0.4%, and the Aussie also 0.3% higher,” said Tapas Strickland, economist at the NAB.
He also noted that the Aussie was not impacted by further weakness in the spot iron ore price, something that has now fallen 30% in a little over a month.
“The Aussie also seemed unperturbed by the 1.8% move lower in the iron ore price to US$49 a tonne,” he said.
Looking ahead to Friday’s trading session in Asia, there are few market moving events on the horizon.
There’s no major data scheduled domestically with Japanese CPI and Chinese industrial profits the only regional releases of note.
Neither are likely to be overly influential on markets.
With the data calendar quiet it suggests that movements in crude futures, the broader US dollar and Chinese stocks will be influential on the Aussie today.
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