The Australian dollar rallied hard in overnight trade, buoyed by strength in stocks and commodity prices.
As at 9.15am AEDT, the AUD/USD currently buys .7292, up 0.63% from Tuesday’s opening level.
On Wall Street stocks posted gains in excess of 1% while crude oil and iron ore rallied by 2% and 2.5% respectively. As a well-renowned barometer of investor risk appetite, the Aussie duly followed suit.
While it came amidst thin market volumes, the gain fits with the seasonal pattern seen in recent years.
The chart below, supplied by CBA’s chief currency strategist Richard Grace, shows the breakdown of the Australian dollar’s historic performance against its US counterpart in December. The blue bars shows the percentage change in the first three weeks of the month, the red the for the remainder – the period we are currently in now.
While not a perfect record, it’s clear that the Aussie has a tendency to outperform in the final weeks of the year, pushing higher in 13 of the 17 years surveyed.
With the currency now up 0.93% month to date, and 2.85% since December 17, it appears likely that record will likely to extend to 14 from the past 18 years should the current form prevail.
Ensuring sentiment and technicals will likely dictate the Aussie’s performance today, there are no major data releases scheduled across the Asian region.
Here’s the current Aussie dollar scoreboard.
- AUD/USD 0.7292 , -0.0002 , -0.03%
- AUD/JPY 87.82 , -0.04 , -0.05%
- AUD/CNY 4.7275 , -0.0013 , -0.03%
- AUD/EUR 0.6672 , -0.0009 , -0.13%
- AUD/GBP 0.4921 , -0.0003 , -0.06%
- AUD/NZD 1.0610 , 0.0001 , 0.01%