The Australian dollar is pushing higher

Photo by Scott Halleran/Getty Images

The Australian dollar consolidated on its recent gains overnight, pushing higher as strength in the crude oil price offset steep declines in US equity markets.

The AUD/USD finished Wednesday trade buying .7375, up 0.18% on Tuesday’s closing level. It briefly popped above 74 cents in European trade before sinking into the US close.

It currently buys .7372.

AUD/USD 5-Minute Chart. Source: Investing.com

Currency strategist at the NAB, Rodrigo Catrilput put the small rise in the Aussie down to US dollar weakness.

“The lack of key data releases, weaker risk appetite and the lure of profit taking after six consecutive days of gains were the most apparent drivers for a softer USD dollar overnight,” said Catril in his morning note.

“The DXY index is 0.5% weaker relative to 24 hours ago with all G10 currencies outperforming the USD.

“The jump in oil prices boosted commodity currencies,” he added.

Looking ahead to Thursday trade in Asia, most attention will be on the release of the minutes of the Bank of Japan’s April monetary policy meeting, an event that stunned financial markets at the time when the bank held policy settings steady despite heightened expectations that it would deliver additional monetary easing.

“In April many participants were blindsided by the BoJ decision to remain on hold, even though the Bank downgraded its growth and inflation outlook as expected,” said Catril. “The summary should hopefully shed some light on how close the BoJ was from easing.”

Given the potential for this release to move the USD/JPY, it’s likely that it will also generate movement in the Aussie dollar.

The minutes will be released at 9.50am AEST.

Domestically, the calendar is devoid of any significant market-moving releases, not only today but for the remainder of the week.

Here’s the current scorecard.

  • AUD/USD 0.7372 , -0.0003 , -0.04%
  • AUD/JPY 79.93 , -0.01 , -0.01%
  • AUD/CNH 4.8114 , -0.0023 , -0.05%
  • AUD/EUR 0.6451 , -0.0002 , -0.03%
  • AUD/GBP 0.5099 , -0.0004 , -0.08%
  • AUD/NZD 1.0800 , -0.0006 , -0.06%

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