Mirroring the gains in risk assets elsewhere, the Australian dollar has staged a dramatic about-face in the past 24 hours, rallying hard on the back of a surge in the crude oil, strength in global stocks and reasonable Chinese data released on Wednesday.
As at 7.50am AEST, the AUD/USD buys .7594, up 0.73% from Wednesday’s opening level.
The gains in the Aussie came despite talk of a potential US rate hike in April from US FOMC policy makers, something that would normally undermine risk assets.
“The March FOMC minutes revealed that Fed officials debated an April hike, but ‘several expressed the view that a cautious approach to raising rates would be prudent or noted their concern that raising the target range as soon as April would signal a sense of urgency they did not think appropriate’,” said Rodrigo Catril, currency strategist at the NAB.
“Overall and consistent with recent Fed officials’ commentary, the minutes gave the impression of a split committee and while an April hike looks to be off the table, a June hike is still live.”
Looking ahead to Thursday’s Asian trading session, there is little in the way of market moving data to generate short term volatility in the Aussie.
In Australia, the Ai Group-HIA performance of construction index will be released at 9.30am AEST.
Regionally China is also scheduled to release its foreign exchange reserves data for March. No time is set for the event although, going off recent months, it may arrive after 6pm AEST this evening.
Market consensus is for a drop of $6 billion, a sharp deceleration compared to the $28.6 billion decline in February and near $100 billion drop in January.
Here’s the current Aussie dollar scoreboard.
- AUD/USD 0.7594 , -0.0004 , -0.05%
- AUD/JPY 83.33 , -0.06 , -0.07%
- AUD/CNH 4.9214 , -0.0014 , -0.03%
- AUD/EUR 0.6663 , 0 , 0.00%
- AUD/GBP 0.5378 , -0.0001 , -0.02%
- AUD/NZD 1.1123 , -0.0002 , -0.02%