(Australian Associated Press)
The Australian dollar is starting the day just as it left off on Tuesday, amid a slight lift in the US dollar, a fall in commodity prices and little data to influence it.
At 0635 AEDT on Wednesday, the Australian dollar was worth 79.64 US cents, unchanged from Tuesday.
The US dollar index against a basket of six major currencies rose off a three-year low, lifting 0.29 per cent to 90.703.
Commodity prices fell, with implicit implications for commodity currencies.
Westpac’s Imre Speizer says the US dollar had not risen that much, but it was the sentiment that screamed louder
“A clawing back of only a small amount (around +0.25 per cent on the day, but +0.5 per cent off extremes) of USD losses seemed more meaningful than the actual moves due to the change in market tone,” he said in a morning note.
“Data releases remained light, despite the return of US markets, but less hawkish tones from European Central Bank members, concerns that the German coalition may face distinct hurdles this coming weekend and a decent pullback in UK’s core CPI added to the less USD negative tone from Asia,”
“The relatively sharp pullback in commodities and only a minor lift above initial expectations for the GDT auction saw both AUD and NZD retreat.”
He said the Australian dollar’s upward moves had been pushing technical limits.
“At present, this seems like a pause, but recent moves in EUR, AUD and especially NZD had become technically stretched.”
The key event risk for the local currency on Wednesday would be the ANZ-MI consumer sentiment report.
“AUD should consolidate between 0.7920 and the key 0.7980-00 area in advance of both consumer confidence and Thursday’s employment report.”
The Aussie dollar is down against both the yen and the euro.
CURRENCY SNAPSHOT AT 0635 AEDT ON WEDNESDAY
One Australian dollar buys:
* 79.64 US cents, unchanged
* 87.88 Japanese yen, from 88.29 yen
* 64.87 euro cents, from 64.95 euro cents
(*Currency closes taken at 1700 AEDT previous local session)