There’s just no holding down the Australian dollar right now.
On the back of a rebound in the crude oil price, strength in stocks and US dollar weakness, the Australian dollar soared in overnight trade, rising to as high as .7757, a level not seen since 24 June last year.
The currency eventually closed Monday’s session buying .7749, some 13.5% above the multi-year low of .6824 struck on January 15 this year. It was also the highest close since June 19, 2015.
With little in the way of regional economic data arriving on Tuesday, David de Garis, senior economist at the NAB, suggests that the RBA March policy meeting minutes, along with a speech from RBA governor Glenn Stevens in New York later this this evening, will dictate movements in the Aussie today.
“The RBA minutes (will be) superseded by last week’s strong local data,” said de Garis in his morning note. “Any new words or discussion/anxiety over the AUD’s consolidation in the mid-to higher 70s would also be of interest over and above the ‘complication’ description in the Board’s Media Release.”
Beyond the minutes, de Garis suggests that governor Glenn Stevens may take the opportunity to talk down the current strength in the Aussie.
“Tonight in New York, Glenn Stevens speaks to the title ‘Observations on the Current Situation’, possibly a discourse on bringing the audience up to date on the economy’s transition after the resources construction boom. Maybe a sound bite or two on the Aussie dollar, though nothing too audacious, we’d suggest,” says de Garis.
Stevens will speak from 11.30pm AEST this evening. A Q&A session will follow the conclusion of his speech.
Here’s the current Australian dollar scoreboard.
- AUD/USD 0.7741 , -0.0008 , -0.10%
- AUD/JPY 84.24 , -0.08 , -0.09%
- AUD/CNH 5.0162 , -0.0079 , -0.16%
- AUD/EUR 0.6841 , -0.0007 , -0.10%
- AUD/GBP 0.5420 , -0.0008 , -0.15%
- AUD/NZD 1.1129 , -0.0019 , -0.17%