Mirroring movements in commodity prices and stocks, the Australian dollar has fallen modestly overnight, opening Thursday’s session at the lowest level seen since October 8.
As at 8.45pm AEDT, the AUD/USD currently buys .7207, half a cent below the .7257 opening level seen on Wednesday.
According to Elias Haddad, senior FX strategist at the CBA, comments from Bai Chongen, a policy advisor at the People’s Bank of China (PBOC) set the tone for movements in the currency overnight.
“AUD/USD dipped sharply early during the European trading session but have since consolidated near recent lows,” wrote Haddad in his morning note.
“The move down in AUD/USD looks to have been triggered by comments from a PBoC policy advisor Bai Chongen. Chongen stated that China “shouldn’t stretch to maintain a 7% growth in the future” and that China was investing “too much” in infrastructure.”
Following the remarks, the AUD/USD dipped from close to .7270 to .7200 over the next hour of trade.
Looking ahead to Thursday’s trading session, the economic calendar is light – not only domestically but across the Asian region.
Of those events of note, RBA assistant governor Malcolm Edey will speak at 9.30am AEDT in Sydney – the topic of his speech is as yet unclear – while the NAB’s quarterly business survey will also be released at 11.30am AEDT.
According to David de Garis, senior economist at the NAB, most attention will be on measures other than business confidence, something that is likely to rise strongly in line with the monthly report for September released last week.
“While the actual reading on business confidence will get some initial wire coverage, there should be more interest in what the survey says about 12-months-ahead capital expenditure plans and employment expectations,” said de Garis.
The Aussie dollar scoreboard can be found below.
- AUD/USD 0.7207 , -0.0001 , -0.01%
- AUD/JPY 86.46 , 0.03 , 0.03%
- AUD/CNY 4.5775 , -0.0006 , -0.01%
- AUD/EUR 0.6361 , 0.0006 , 0.09%
- AUD/GBP 0.4676 , 0.0002 , 0.04%
- AUD/NZD 1.0737 , -0.0002 , -0.02%
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