The Australian dollar has had a wild 24 hours.
This time yesterday it was under severe selling pressure, falling in sympathy with the New Zealand dollar, following a rate cut, dovish monetary policy statement and series of economic forecast downgrades from the RBNZ after its September meeting. It fell to as low as .6943 before rebounding strongly in afternoon trade following the release of a strong Australian jobs report for August.
That afternoon form carried over to European and North American trade overnight with the Aussie briefly testing the 71 cent level before retracing lower.
High levels of short positioning and broad based US dollar weakness, along with the August job report, all contributed to the surge higher overnight.
It currently buys .7076 against its US counterpart, a full cent higher than where it was trading this time yesterday.
With no major data releases arriving today – either domestically or regionally – the movements in the Aussie will likely be determined by sentiment in stocks, particularly those in China.
The full Australian dollar scoreboard is found below.
- AUD/USD 0.7076 , 0.0009 , 0.13%
- AUD/JPY 85.44 , 0.18 , 0.21%
- AUD/CNY 4.5124 , 0.0039 , 0.09%
- AUD/EUR 0.6265 , -0.0001 , -0.02%
- AUD/GBP 0.4581 , 0.0004 , 0.09%
- AUD/NZD 1.1203 , -0.0028 , -0.25%
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