The Australian dollar is looking resilient


The Australian dollar is trading higher on Wednesday morning, buoyed by an optimistic assessment on the current state of the Australian economy from RBA governor Glenn Stevens overnight and a recovery in risk assets following terrorist attacks in Brussels.

Against the US dollar, the Australian dollar currently buys .7622 in late New York trade, up 0.61% for the session.

David de Garis, senior economist at the NAB, notes how the Aussie was pushed and pulled by conflicting factors in overnight trade.

“Markets overnight took their initial direction from the bombings in Brussels at the airport and the railway station, a catalyst for a mild risk-off market tone,” said de Garis in his Wednesday morning note.

“The AUD likewise initially lost around half a cent from around the 0.7620 level to 0.7560, but like most risk assets, that selling dissipated and was reversed for some risk assets, including the AUD that sits back above the figure at 0.7625 in early Asian trade this morning.”

On Stevens’ speech late Tuesday afternoon, something that saw the Aussie pop higher in early European trade, de Garis notes that it “came and went without any fanfare as far as AUD comment was concerned” with the governor “pretty content with how the economy‚Äôs transition was progressing, noting it had continued into 2016”.

AUD/USD 5-Minute Chart Source:

Looking ahead today, there’s next to no scheduled events that look set to create short term volatility for the Aussie.

Australian skilled job vacancies data for February will be released at 11am AEDT, although de Garis suggests that it will be “very unlikely to trouble the scorers”, a polite way for saying generate no market reaction in the Aussie.

With no major regional releases scheduled and markets already winding down before the Easter break, it points to the likelihood of a quiet session of trade.

Here’s the current Australian dollar scoreboard, as at 7.55am AEDT.

  • AUD/USD 0.7622 , 0.0046 , 0.61%
  • AUD/JPY 85.62 , 0.79 , 0.93%
  • AUD/CNH 4.9487 , 0.036 , 0.73%
  • AUD/EUR 0.6794 , 0.0054 , 0.80%
  • AUD/GBP 0.5362 , 0.0088 , 1.67%
  • AUD/NZD 1.1275 , 0.0075 , 0.67%

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