The Australian dollar softened overnight, losing ground against both the US dollar and the crosses.
First, here’s the scoreboard as at 7.35am AEST.
AUD/USD 0.7427 , -0.0002 , -0.03%
AUD/JPY 82.28 , 0.00 , 0.00%
AUD/CNH 5.0166 , 0.0052 , 0.10%
AUD/EUR 0.6602 , -0.0004 , -0.06%
AUD/GBP 0.5765 , 0.0003 , 0.05%
AUD/NZD 1.0483 , -0.0001 , -0.01%
Rodrigo Catril, currency strategist at the NAB, put the renewed weakness in the Aussie down to weakness in commodity prices.
“The fall in oil prices has seen commodity linked currencies underperform the US dollar with the Australian dollar at the bottom of the G10 leader board,” he said. “The Aussie’s under performance was compounded by declines in iron ore and Metallurgical coal prices.”
The weakness in commodity markets certainly weighed on the Aussie, as seen in the hourly chart below.
Being the first day of the month, there’s a plethora of major data releases for traders to digest today, both in Australian and abroad.
Domestically, the Ai Group’s manufacturing PMI and CoreLogic’s monthly house price index for May will be released at 9.30am and 10am respectively. Those reports will be followed by retail sales for April and the March quarter business capital expenditure report that will be both released at 11.30am AEST.
The latter two have the potential to spark volatility in the Aussie, particularly if they both print either stronger or weaker than expected.
There will also be a smattering of manufacturing PMI reports that will be released across the region, including from China, Japan, South Korea and India.
As usual, if there is to be any market interest, it’ll likely come from the Chinese print.
Later in the session the manufacturing PMI deluge will continue with figures released from the US, Eurozone, UK and Germany, among a host of others.
Beside PMI’s, UK house price data and Italian GDP will be released in Europe while in the US ADP employment, weekly jobless claims and Challenger layoffs data will also be released.
“ADP employment in the US is expected to print at 180,000, but many commentators are suggesting there is a chance for a stronger number,” said Catril.
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