The Australian dollar endured another wild session overnight, falling to as low as .7082 midway through the US session before staging a dramatic late rally on the back of renewed strength in US stocks.
Having hit a high above .7150 shortly after US markets closed, the Aussie has drifted lower, falling to where it was trading this time yesterday at .7128.
Clearly, as sentiment shifts as to what the US Federal Reserve will do with interest rates come Thursday afternoon (4am AEST Friday), the Aussie is following suit at present, like the true risk barometer it has come to be.
Looking ahead to today’s Asian session, there’s two factors that are likely to be influential on the short term movements in the Aussie – a speech by RBA assistant governor Guy Debelle at 9.30am AEST entitled “Bond market liquidity, long term rates and China” along with the performance of Chinese stocks, something that has created short-term volatility in the Aussie, particularly in the latter parts of trade.
On Debelle, NAB senior currency strategist Emma Lawson notes “that (it) should give us a lot to think about if all of that is included. If it is anything but longer term thinking then it has the potential to move markets”.
The full Australian dollar scoreboard is found below.
- AUD/USD 0.7128 , -0.0013 , -0.18%
- AUD/JPY 85.79 , -0.20 , -0.23%
- AUD/CNY 4.5395 , -0.0082 , -0.18%
- AUD/EUR 0.6324 , -0.0014 , -0.22%
- AUD/GBP 0.4645 , -0.0009 , -0.19%
- AUD/NZD 1.1220 , -0.0006 , -0.05%
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