The Australian dollar is under pressure as North Korea conducts another missile test

Jeff J Mitchell/Getty Images

The Australian dollar has fallen sharply in early Asian trade on Tuesday following news that North Korea has conducted another missile test.

Here’s the scoreboard as at 7.50am AEST.

AUD/USD 0.7926 , -0.0036 , -0.45%
AUD/JPY 86.27 , -0.71 , -0.82%
AUD/CNH 5.2462 , -0.0223 , -0.42%
AUD/EUR 0.6617 , -0.0029 , -0.44%
AUD/GBP 0.6128 , -0.0028 , -0.45%
AUD/NZD 1.0951 , -0.0019 , -0.17%
AUD/CAD 0.9935 , -0.0018 , -0.18%

The Aussie has fallen against all major crosses, reversing much of the gains achieved during Monday’s day session.

Here’s the AUD/USD hourly chart.

AUD/USD Hourly Chart

Before the news of this latest missile test, the AUD/USD had risen to as high as .7973, a four-week high.

That move was driven by broad-based US dollar weakness, continuing the move seen late on Friday following key speeches from US Fed chair Janet Yellen and ECB president Mario Draghi at the Jackson Hole Economic Symposium.

The reluctance from either to discuss monetary policy at this event, along with concern about the potential for economic disruption as a result of damage caused by Hurricane Harvey on the Texas coastline, weighed on the US dollar during the session, aiding the Aussie’s move higher.

However, with geopolitics back on the radar, those factors have been overlooked by traders, at least in the early parts of the session.

With Japanese unemployment and household spending figures the only major releases in Asia, movements in the Aussie today are likely to be driven by the headlines that will undoubtedly follow this latest missile test from Pyongyang.

If you’re not already, perhaps it’s time to add Donald Trump to your twitter timeline.

Later in the session, markets will receive the Nationwide House Price Index in the UK, the second estimate of Fresh Q2 GDP along with US consumer confidence from the Conference Board and CaseShiller house price index.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.