The Australian dollar is in a holding pattern ahead of Wednesday's crucial inflation report

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There was no major economic data released overnight and markets are hanging out for a smorgasbord of major events later in the week, including Australian Q2 CPI on Wednesday. As such, the Australian dollar did next to nothing in overnight trade.

The AUD/USD closed the session buying .7466, fractionally above the .7461 level it finished the previous trading week.

A 30 daily pip range speaks volumes of the lack of interest in markets, with many awaiting fresh news later in the week before initiating more aggressive trading positions.

“Markets have shifted from a wait and see stand to a slightly more suspicious mode ahead of the Fed and BoJ meeting this week,” said Rodrigo Catril, currency strategist at the NAB. “US equities retreated from new record highs pulled down by energy shares as oil prices fell.”

Catril believes the small reversal in the Aussie overnight, seen in the 5-minute chart below, came courtesy of the decline in crude prices.

AUD/USD 5-Minute Chart

Continuing the theme seen in recent days, there are no major economic data or events for markets to deal with on Tuesday, suggesting yet again that movements in crude oil futures, the Japanese yen and Chinese financial markets will dominate the Aussie in Asia.

Here’s the current Aussie dollar scoreboard, as at 7.40am AEST.

  • AUD/USD 0.7466 , 0 , 0.00%
  • AUD/JPY 79.01 , 0.05 , 0.06%
  • AUD/CNH 4.9914 , -0.0004 , -0.01%
  • AUD/EUR 0.6787 , -0.0002 , -0.03%
  • AUD/GBP 0.5681 , 0 , 0.00%
  • AUD/NZD 1.0667 , 0 , 0.00%

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