The Australian dollar, yet again, did very little overnight, a remarkable performance all things considered given carnage seen in commodity markets.
The AUD/USD traded in a 50 pip range between .7585 and .7635, eventually closing Wednesday’s session buying .7612, near identical to the Tuesday’s closing level.
It’s very hard to make anything of the price action seen overnight, something that Ray Attrill, global co-head of FX strategy at the National Australia Bank, summed up perfectly in the first line of his morning note.
“Only on line one and I already feel like I’m making this up, such is the state of market torpor in front of the Fed’s Jackson Hole symposium and as Southern England basks in 30 degree summer sunshine – and uncharacteristically not for the first time this year,” he mused.
The AUD/USD currently buys .7612 as at 7.55am AEST.
As communicated by Attrill, the markets, including the Aussie dollar, are currently in a holding pattern, awaiting a speech from US Federal Reserve Chair, Janet Yellen, later in the week at the annual Jackson Hole Symposium hosed by the Kansas Fed.
“Struggle as we do to believe that this will result in a much stronger steer from Fed officials about what’s the Fed near term intentions are, Janet Yellen’s appearance at the (AEST) midnight hour on Friday is the only big talking point in markets and in the meantime leaves FX, stocks and bonds lacking direction,” he wrote.
With that event still more than 24 hours away, the subdued price action in the Aussie looks set to continue on Thursday with nothing on the domestic or regional data calendar to generate any substantial market movement.
There’s absolutely nothing to speak of, suggesting that movements in stocks, commodity futures and in the USD/JPY — often influential on the US dollar index in Asia — will likely drive movements yet again in the Aussie.
Perhaps that’s even drawing a long bow.
Here’s the current Australian dollar scoreboard as at 7.55am AEST.
- AUD/USD 0.7612 , 0 , 0.00%
- AUD/JPY 76.47 , 0.02 , 0.03%
- AUD/CNH 5.0770 , -0.001 , -0.02%
- AUD/EUR 0.6756 , -0.0001 , -0.01%
- AUD/GBP 0.5752 , 0.0001 , 0.02%
- AUD/NZD 1.0413 , 0.0008 , 0.08%