The Australian dollar just hit a three-month high

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The Australian dollar just closed at a three-month high, continuing to grind higher since mid-July.

After hitting .7687 in the early parts of US trade, the AUD/USD closed Tuesday’s session at .7671, the highest level seen since April 26.

“Falling global bond yields, a further increase in European equity markets and rising iron ore prices supported a higher AUD/USD,” said Elias Haddad, senior currency strategist at the Commonwealth Bank.

Coincidentally, Chinese iron ore futures and the Aussie dollar both sit at three-month highs, something that Annette Beacher from TD Securities suggests is contributing to the relentless bid in the Aussie.

AUD/USD Daily Chart

While there was hardly any news to speak of in overnight trade, there’ll be plenty for traders and investors to focus on in Asian trade on Wednesday, including a farewell speech from outgoing Reserve Bank of Australia governor Glenn Stevens.

“The big event to watch today will be Glenn Stevens’ speech to the Anika Foundation, his last speech as Governor of the RBA after 10 years of service,” wrote David de Garis, senior economist at the NAB.

“There’s no title as yet for his speech that has a scheduled 1.05pm AEST start time. You wouldn’t be surprised if it was more reflective in nature, but there’s always the possibility for Q&A given the freshness of last week’s rate cut and quarterly statement [on monetary policy].

Outside of Stevens’ speech, markets will also receive the latest Westpac-MI consumer sentiment report for August along with Australian housing finance data for June.

After a surprise fall in the separate ANZ-Roy Morgan consumer confidence index on Tuesday, markets will be paying close attention to see whether that was replicated in the Westpac survey. It’ll be released at 10.30am AEST.

On the housing finance data, de Garis suggests there’s likely to be “more interest in the investment lending values, that rose 3.9% last month in a flattening trend”. It’s out an hour later at 11.30am AEST.

Elsewhere — be it Asia, Europe or the US — the data calendar remains quiet, suggesting that the next major data point for markets will be Thursday morning’s Reserve Bank of New Zealand interest rate decision.

Here’s the Aussie dollar scoreboard, as at 7.55am AEST.

  • AUD/USD 0.7664 , -0.0007 , -0.09%
  • AUD/JPY 78.05 , -0.11 , -0.14%
  • AUD/CNH 5.1036 , -0.0061 , -0.12%
  • AUD/EUR 0.6894 , -0.0003 , -0.04%
  • AUD/GBP 0.5894 , -0.0005 , -0.08%
  • AUD/NZD 1.0690 , -0.0012 , -0.11%

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