Despite sharp declines in base metals, iron ore and crude oil, the Australian dollar finished the overnight session higher, buoyed by earlier gains in European stocks.
As at 8.30am AEDT, the AUD/USD currently buys .7117, up 0.32% on Tuesday’s opening level of .7094.
Looking ahead to Wednesday’s Asian session, Joseph Capurso, senior currency strategist at the CBA, believes most interest will be on a speech delivered by RBA assistant governor Guy Debelle at 9.30am AEDT along with the September quarter wage price index released at 11.30am AEDT.
“RBA Assistant Governor Debelle speaks at a regulation summit and the Q3 Australian wage growth is released,” Capurso wrote in his morning note.
“Annual wage growth will remain weak and not threaten to push up inflation. While the wages report may generate some intra-day volatility in the AUD, we think the RBA will be reluctant to cut interest rates in the near term given the improvements in the domestic economy. However, external factors such as lower commodity prices, a firmer USD and softer major trading partner growth will continue to weigh on the AUD.”
While not a noted market mover, the wage price index is likely to confirm that Australian wages grew near the lowest level on record in the year to September. Markets expect quarterly growth of 0.6%, leaving the annual rate at 2.3%. Other domestic releases also include the Westpac-MI leading index at 10.30am AEDT.
Across the region the calendar is near-empty with Chinese new home prices for October the only release of note.
Here’s the current Aussie dollar scoreboard.
- AUD/USD 0.7117 , 0.0023 , 0.32%
- AUD/JPY 87.82 , 0.46 , 0.53%
- AUD/CNY 4.5386 , 0.0197 , 0.44%
- AUD/EUR 0.6683 , 0.0046 , 0.69%
- AUD/GBP 0.4679 , 0.0012 , 0.26%
- AUD/NZD 1.0990 , 0.0076 , 0.70%
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