The Australian dollar continued to slide in overnight trade, falling below the 75 cent level for the first time in more than a week.
As the 5-minute chart below reveals, the AUD/USD was trapped under this level for the entirety of North American trade.
Joseph Capurso, senior currency strategist at the Commonwealth Bank, put the ongoing weakness down to a multitude of factors.
“Pushing the AUD lower were weaker global equity markets and widespread falls in commodity prices. The exception was a rare lift in the price of iron ore. But at a spot price of $64.60 per ton, the iron ore price is well down from its February high of $94.86 per ton,” he said on Thursday morning.
“With commodity prices retreating and the uncertain French election in days, the AUD is likely to remain heavy in the near term.”
A rebound in US treasury yields, helping to support the US dollar, may have also been a factor explaining the Aussie’s underperformance.
Here’s how the scoreboard currently reads as at 7.30am AEST.
AUD/USD 0.7491 , -0.0003 , -0.04%
AUD/JPY 81.53 , -0.04 , -0.05%
AUD/CNH 5.1573 , -0.0014 , -0.03%
AUD/EUR 0.6992 , -0.0003 , -0.04%
AUD/GBP 0.5861 , -0.0002 , -0.03%
AUD/NZD 1.0694 , -0.0003 , -0.03%
While there’s plenty on the economic data docket today in Asia, all are second-tier in nature meaning they’ll have a limited impact on markets.
In Australia, the NAB will release its quarterly Australian business survey at 11.30am AEST while the ANZ-PCA June quarter property survey will be released at 8am AEST.
Regionally, New Zealand Q1 CPI will be released at 8.45am AEST.
While it has a less-than-stellar track record for predicting the outcome of Australia’s CPI report, if there is to be a data point today that will generate some volatility in the Aussie, this is likely to be it.
Markets are looking for a quarterly increase of 0.8%, something that would leave the year-on-year rate at 2.0%, smack-bang in the middle of the RBNZ’s 1-3% inflation target.
Elsewhere, Japan will release trade figures for March at 9.50am AEST.
Later in the session, markets will receive weekly jobless claims, the Philadelphia Fed manufacturing survey and latest Leading Index for March from the US. Eurozone consumer confidence and German producer price inflation figures will also be released.
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