The Australian dollar is drifting ahead of a key speech from the RBA governor

Photo by Valerie Abbott / Barcroft Media / Getty Images

The Australian dollar had a quiet session overnight, largely reflecting the muted moves seen in broader financial markets.

However, that looks set to change later in Thursday’s session.

Here’s the current scoreboard as at 8.15am AEDT.

  • AUD/USD 0.7640 , 0.0016 , 0.21%
  • AUD/JPY 85.54 , -0.13 , -0.15%
  • AUD/CNH 5.2251 , 0.0147 , 0.28%
  • AUD/EUR 0.7147 , 0.0012 , 0.17%
  • AUD/GBP 0.6093 , -0.0001 , -0.02%
  • AUD/NZD 1.0502 , 0.0062 , 0.59%

And the 5-minute AUD/USD chart, underlining just what a listless session it was for the Aussie.

The one big move came against the New Zealand dollar following the release of the Reserve Bank of New Zealand’s February monetary policy decision earlier this morning.

The bank expressed concern over the elevated level of the New Zealand dollar, cutting its expectation for inflation in the 12 months ahead. Crucially, it doesn’t expect to lift interest rates until late 2019 at the earliest, bucking market expectations that were pricing in a hike at the start of next year.

The Kiwi tumbled as a consequence.

The lacklustre moves in the Aussie — courtesy in part to a quiet economic calendar — look set to continue during Asian trade today.

Domestically, HIA new home sales for December will be released at 11am AEDT. That will be followed 30 minutes later by the quarterly NAB business confidence survey.

Neither are likely to be overly market moving.

Elsewhere the economic calendar is quiet across the region, suggesting that movement in the USD/JPY and USD/CNY, yet again, will likely prove influential on broader currency markets.

Later in the session, the news flow looks set to quicken with a number of central bankers — including RBA governor Philip Lowe — scheduled to speak.

“There’s no title as yet though a great opportunity for the governor to outline in more detail the Bank’s latest assessment and forecasts for the economy summarised in Tuesday’s post-board media release,” said David de Garis, director of economics at the NAB.

Lowe will speak from 8pm AEDT.

Elsewhere, markets will also hear from US Federal members James Bullard and Charles Evans, the latter a voting FOMC member in 2017, along with Bank of England governor Mark Carney.

On the data front, German trade figures for December will be released (and will likely receive more attention than usual given recent tensions over currency manipulation) along with weekly jobless claims from the United States.

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