The Australian dollar has now reclaimed all of its post-Brexit losses, and then some.
The AUD/USD finished Tuesday trade buying .7621, up 1.22% for the session. At one point it rose above .7650, leaving it at the highest level seen since May 3, the day the RBA last cut rates.
Rodrigo Catril, currency strategist at the National Australia Bank, notes that the factors that drove the surge were simply a continuation of those seen in recent days.
“Risk assets had another positive night boosted by the prospects of a new round of stimulus in some major economies and the removal of at least one source of UK political uncertainty,” he said.
“The improvement in risk appetite coupled with a rise in commodity prices (Iron ore 6.6% to $59.4) have helped the antipodean currencies outperform with the AUD also buoyed by another solid NAB business survey.”
As at 7.45am AEST, the AUD/USD buys .7620, extending the gains from the lows struck on June 24 to 4.4%.
Turning to Wednesday trade in Asia, the economic events calendar suddenly springs back to life with major data releases scheduled both at home and abroad.
Domestically, markets will receive the latest Westpac-MI consumer sentiment report (10.30am AEST) for July while on the regional front all attention will be on the release of Chinese international trade figures for June.
On the latter, exports and imports, priced in US dollar terms, are expected to decline by 4.1% and 5.0% respectively from a year earlier.
There is no set time for the release, although in the past it frequently tends to arrive just after Midday AEST.
Outside of economic data, Loretta Mester, a voter on the Federal Reserve’s FOMC in 2016 and noted policy hawk, will also speak from 12.30pm AEST.
Here’s the Aussie dollar scoreboard, as at 7.45am AEST.
- AUD/USD 0.7620 , -0.0001 , -0.01%
- AUD/JPY 79.83 , 0.05 , 0.06%
- AUD/CNH 5.1028 , 0.0002 , 0.00%
- AUD/EUR 0.6888 , -0.0001 , -0.01%
- AUD/GBP 0.5753 , -0.0001 , -0.02%
- AUD/NZD 1.0444 , 0.0016 , 0.15%