The Australian dollar is largely unchanged in early Asian trade on Monday, holding comfortably above 76 cents after testing that level on Friday.
Here’s the Aussie dollar scoreboard as at 7.40am AEDT.
- AUD/USD 0.7626 , 0.0004 , 0.05%
- AUD/JPY 84.56 , -0.14 , -0.17%
- AUD/CNH 5.2391 , 0.004 , 0.08%
- AUD/EUR 0.7035 , -0.0021 , -0.30%
- AUD/GBP 0.6103 , 0.0001 , 0.02%
- AUD/NZD 1.0839 , -0.0008 , -0.07%
Elias Haddad, senior currency strategist at the Commonwealth Bank, said that the US dollar received a boost from renewed optimism towards prospective US tax reforms, an outcome that came despite the failure of House Republicans to garner enough support to repeal Obamacare.
“(The) USD, US 10-year Treasury yields and US stocks recovered slightly late during Friday’s New York trading session after the Republicans’ healthcare bill vote in the US House of Representative was cancelled,” he says.
“The signal from US President Trump and Republican leaders that they were ready to move on to tax reform/cuts supported USD and US Treasury yields.”
With nothing of significance on the economic calendar over the next 24 hours, Rodrigo Catril, senior currency strategist at the Nationbal Australia Bank, expects that the renewed focus on US tax reforms will remain the dominant theme.
“Markets are likely to start the week in a cautious mode amid lack of direction from the US,” he says. “A shift in focus by the Trump’s administration towards Tax reform will no doubt fill a lot of headlines at the start of the week.”
Given a lack of important data or economic events, its likely that movements in US treasury yields, the USD/JPY and Chinese commodity futures will prove influential on the Aussie dollar today.