The Australian dollar is trading back below the 75 cent level this morning, coming under renewed selling pressure thanks to renewed US dollar strength, a steep decline in iron ore prices and renewed geopolitical concerns in the Middle East.
Here’s the scoreboard as at 7.30am AEDT.
- AUD/USD 0.7493 , -0.0002 , -0.03%
- AUD/JPY 83.21 , 0.01 , 0.01%
- AUD/CNH 5.1667 , 0 , 0.00%
- AUD/EUR 0.7076 , 0.0011 , 0.16%
- AUD/GBP 0.6050 , -0.0001 , -0.02%
- AUD/NZD 1.0797 , 0.0025 , 0.23%
And here’s the AUD/USD daily chart, revealing that the Aussie briefly fell below the low of .7488 struck on March 9 this morning, briefly leaving it trading at the lowest level since January 17.
It currently buys .7493.
From the high of .7750 touched on March 21, the AUD/USD has now fallen 3.4%.
While the Aussie has been under pressure, Ray Attrill, global co-head of FX strategy at the National Australia Bank, thinks that it’ll likely consolidate upon those losses, rather than extend them, this week.
“Having now hit 0.7500, we rather expect consolidation of last week’s losses than an extension, with exporters in particular likely to be in evidence below the figure,” he says.
Looking to Monday trade in Asia, there’s little in the way or market moving data both at home and abroad until later in the session.
In Australia, housing finance figures for February will be released at 11.30am AEST although, given these pre-date moves introduced by APRA earlier this month to limit the proportion of interest-only mortgage loans being written, it’s unlikely to garner much of a market reaction.
Outside of that, the calendar is devoid of any major events in Asia, likely ensuring that movements in USD/JPY, US treasury yields and Chinese commodity futures will prove more influential than usual today.
Later in the session, US Federal Reserve chair Janet Yellen will speak at 6am AEST Tuesday morning. On an otherwise quiet calendar, this will be the undisputed highlight.
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