The Australian dollar is largely unchanged from where Asia left it yesterday afternoon, clinging onto the gains achieved during the Asian session.
The AUD/USD currently fetches .7570, with the Aussie also outperforming against most of the major crosses.
Here’s the early scoreboard.
- AUD/USD 0.7570 , 0.003 , 0.40%
- AUD/JPY 86.95 , 0.37 , 0.43%
- AUD/CNH 5.2200 , 0.025 , 0.48%
- AUD/EUR 0.7104 , 0.0036 , 0.51%
- AUD/GBP 0.6192 , -0.0006 , -0.10%
- AUD/NZD 1.0924 , 0.0033 , 0.30%
In what was an otherwise quiet session, the Aussie no doubt benefited from renewed strength in base and bulk commodity prices on Monday, particularly for iron ore which logged its largest one-day percentage increase since February 27 on Monday.
That, in the absence of any major market moving news, appears to have been enough to prompt renewed buying after the AUD/USD fell to as low as .7488 on Thursday last week.
It hit as high as .7592 during overnight trade, taking its gain from the lows to 1.4%.
After a relative dearth of data or news on Monday, the economic calendar springs back to life on Tuesday with the release of major economic data both domestically and abroad.
At home, all eyes will be on the release of the National Australia Bank’s February business survey at 11.30am AEDT.
Previously, the conditions index jumped by 6 points to +16 with the survey’s employment conditions index hitting its highest level since 2011. The business confidence index also jumped, rising 4 points to +10 leaving it well above the series long-run average.
The question many traders will be asking themselves today is whether that stellar result was a “flash in the pan” or the start of a longer-lasting trend.
Before the NAB report is released, markets will also receive the weekly ANZ-Roy Morgan consumer confidence index at 9.30am AEDT. Though always interesting, it’s unlikely to move the Aussie.
Outside of Australia, all attention will be on the release of Chinese retail sales, industrial production and urban fixed asset investment figures for the January-February period that will be released at 1pm AEDT.
Industrial production, fixed asset investment and retail sales are all expected to have risen by 6.2%, 8.3% and 10.6% respectively from the same period a year earlier.
“If so, the data would suggest China has started 2017 on a solid footing,” said Rodrigo Catril, currency strategist at the National Australia Bank.
Of all the events scheduled today, China’s “data dump”, as it has become known in markets, appears the most likely event to create short-term volatility in the Aussie.
Later in the session, markets will receive German investor confidence figures for March while in the US the NFIB’s small business survey for February will also be released.
So another largely quiet session before what will undoubtedly be a hectic end to the week.