On the back of a strong US non-farm payrolls report for October, lacklustre Chinese trade figures released over the weekend and further weakness in commodity prices, the Australian dollar has opened the new trading week under renewed selling pressure, flirting with the 70 cent level early Asian trade.
As at 8.15am AEDT, the AUD/USD buys .7024, a full cent lower than the .7139 opening level seen on Friday. At one point this morning the pair fell to as low as .7018, the lowest level seen since October 2.
According to Ray Attrill, global co-head of FX strategy at the NAB, strong US jobs figures released on Friday evening acted as the chief catalyst to drill the Aussie lower.
“Friday’s US payrolls report delivered across-the-board strength and markets responded to script with the dollar and bond yields both sharply higher,” wrote Attrill in his morning note.
“In currencies, every G10 currency lost more than 1% in the immediate wake of the payrolls report, with AUD, NOK and NZD faring worst, second and third worst respectively. AUD/USD dropped by 1.4 to 0.7043 and NZD by 1.35% to 0.6524.”
Compounding the Aussie dollar weakness this morning, Attrill notes that Chinese export and import figures released on Sunday both came in well below market expectations.
“Though the overall trade surplus of $61.6 billion was in line with expectations, this came about on weaker than expected (negative) export and import growth rates. Exports were down 6.9% y/y from -3.7% and the -3.2% expected, and imports down 18.8% y/y, up from -20.4% in September but worse than the -15.2% expected,” he wrote.
Looking ahead to Monday’s trading session, the economic data calendar is bare, leaving investor sentiment and speculation before the release of major economic data from Australia, China and the US to dictate direction in the Aussie.
“This week, Australia’s NAB business survey (Tue), China’s monthly data dump (Wed), Australia’s labour market report (Thu) and US retail sales and consumer sentiment (Fri) are the known highlights,” notes Attrill.
Here’s the current Aussie dollar scoreboard.
- AUD/USD 0.7024 , -0.0116 , -1.62%
- AUD/JPY 86.55 , -0.13 , -0.15%
- AUD/CNY 4.4622 , -0.0102 , -0.23%
- AUD/EUR 0.6544 , -0.0006 , -0.09%
- AUD/GBP 0.4663 , -0.0011 , -0.24%
- AUD/NZD 1.0791 , 0 , 0.00%
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