The Australian dollar was largely unchanged against the US dollar overnight but fell against the major crosses.
Here’s the scoreboard as at 7.40am AEDT.
- AUD/USD 0.7621 , -0.0001 , -0.01%
- AUD/JPY 84.31 , -0.39 , -0.46%
- AUD/CNH 5.2229 , -0.0122 , -0.23%
- AUD/EUR 0.7012 , -0.0044 , -0.62%
- AUD/GBP 0.6064 , -0.0038 , -0.62%
- AUD/NZD 1.0808 , -0.0039 , -0.36%
Elias Haddad, senior currency strategist at the Commonwealth Bank, put the Aussie’s underperformance down to slumping iron ore prices, Australia’s largest goods export by dollar value.
“AUD/USD is trading heavy near 0.7620 because of lower iron ore prices,” he said. “Iron ore future prices fell overnight to its lowest level since early February on growing stockpiles at major Chinese ports.”
That helped keep a lid on the Aussie despite broad-based US dollar weakness stemming from concern that Donald Trump will be unable to deliver on his pre-election promises, including on tax reform.
As was the case on Monday, there is little in the way of market moving events or data scheduled for Tuesday, likely ensuring that investor sentiment, along with movements in US bond yields, the USD/JPY and Chinese commodity futures, will likely dictate the direction of the Aussie.
RBA deputy governor Guy Debelle will speak at 9am AEDT on “the global code of conduct for the exchange market: final phase,” with the title providing little indication that monetary policy will be discussed.
“Don’t expect any market fireworks,” said David de Garis, director of economics at the National Australia Bank, in his morning note.
“The market pays close attention to any comments on the Aussie or the market from Debelle but expect him to stick to script on the Global FX Code of Conduct as he did to a conference in Singapore last week.”
Robert Kaplan, Dallas Fed president and 2017 FOMC voter, will also be in action from 9.30am AEDT.
US Federal Reserve chair Janet Yellen will also speak on “Addressing Workforce Development Challenges in Low-Income Communities” later in the session.
On the data front, US house price, consumer confidence and Richmond Fed manufacturing index will also be released.
It’s another fairly quiet data calendar, fitting with the general theme for the week.