The Australian dollar endured a surprisingly quiet period in overnight trade, ending the session where Asia left it despite more raucous buying in global stocks and another surge in crude oil futures.
The Aussie traded up to as high as .7220 before retracing lower, ending the session buying .7198 against the US dollar.
As at 7.50am AEST, it is currently fetching .7193.
Turning to Thursday’s trading session in Asia, almost all attention will be on the release of Australia’s March quarter private capital expenditure report at 11.30am AEST, an important component of Australian GDP that looks at current levels of business investment as well as expectations for the financial year ahead.
“We don’t anticipate the market will as pay much attention to these numbers as they have in the past,” wrote Richard Grace, chief currency strategist at the CBA, in his morning note.
“This is because the main economic focus at the moment is low inflation, and the capex survey does not provide a good read on the inflationary outlook to be a determining factor in whether the market will price a greater chance of the RBA bringing forward their next interest rate cut to June or not.”
Although Grace believes that the data will not generate significant movement in the Aussie as it has in the past, for those who are interested in what to look for in the report, this quick 10-second guide will bring you up to speed.
Looking beyond the Asian session, there are a plethora of potential market moving events on the horizon including speeches from several US Federal Reserve members along with key US economic data, including durable goods orders.
RBA deputy governor, Guy Debelle, will also be in action, participating in no less than three separate events in New York from 11pm AEST.
Business Insider Emails & Alerts
Site highlights each day to your inbox.