There’s a lot for Australian dollar traders to digest on Thursday

Kevin Mazur / KCSports2016 / WireImage

The Australian dollar is almost exactly where Asia left it yesterday in early trade this morning, having tried and failed to clear the US 77 cent level during the overnight session.

As at 7.50am AEST, the AUD/USD currently buys .7671. It rose to as high as .7697 in US trade before retracing in the latter parts of US trade.

AUD/USD 5-Minute Chart

Richard Grace, chief currency strategist at the Commonwealth Bank, notes the pullback was assisted by the release of the latest US Federal Reserve’s Beige Book on economic conditions, something that helped to bolster the US dollar as a consequence.

“The Fed’s beige book showed ‘expectations of wage growth for the coming month were modest’ and businesses are becoming a little concerned about the US Presidential election,” he said. “There was little reaction from US bond yields and the USD edged slightly higher by default as EUR/USD drifted slightly lower.”

The US dollar was also assisted by a stronger-than-expected US JOLTS report which revealed job vacancies rose to 5.871 million in July, the highest level on record.

Looking ahead to Thursday trade in Asia, markets will receive a double-dose of trade figures — the first from Australia and the second from China — along with a speech from incoming Reserve Bank of Australia governor, Philip Lowe, at 8.55am AEST.

On the trade front, Australia’s international trade position is expected to improve modestly in July with a deficit of $2.75 billion expected, down from $3.195 billion in June.

For China, a trade surplus of $US58 billion is forecast for August, above the $US52.31 billion level of July. Compared to a year earlier, exports are tipped to decline by 4% in dollar terms, slightly lower than the 4.9% drop expected in imports.

As for Lowe’s speech, while he could surprise, one would suspect that he’d avoid any specific commentary on monetary policy, particularly coming just two days after the RBA’s September rates decision.

Outside of those events, markets will also receive revised Q2 GDP figures from Japan at 9.50am AEST.

Later this evening the European Central Bank will announce its September monetary policy decision while in the US we’ll receive weekly jobless claims and consumer credit figures.

Here’s the Australian dollar scoreboard as at 7.50am AEST.

  • AUD/USD 0.7671 , -0.0001 , -0.01%
  • AUD/JPY 78.01 , 0.00 , 0.00%
  • AUD/CNH 5.1169 , 0.0017 , 0.03%
  • AUD/EUR 0.6827 , 0.0006 , 0.09%
  • AUD/GBP 0.5750 , 0.0002 , 0.03%
  • AUD/NZD 1.0292 , 0.0002 , 0.02%