Posted by William C on Jul 08, 2012
The Australian dollar has rallied late, as traders anticipate the release of key data both at home and abroad in the next two days.
At 1700 AEST the Australian dollar was trading at 102.23 US cents, up from 101.86 US cents yesterday.
The Australian dollar ebbed and flowed throughout Wednesday as the market considered the impact of both the euro zone finance ministers’ decision to provide Spain 30 billion euros ($A36.41 billion) aid for its banks, and the release of Tuesday’s trading figures from China.
National Australia Bank currency strategist Emma Lawson said that while the Australian dollar started strongly on the back of increased optimism out of Europe it still traded in a tight range on Wednesday.
“The Aussie dollar moved in a tight range today with limited local data available,” Ms Lawson said. “It’s very much sitting and waiting for the release of the US FOMC minutes tonight and the Chinese data later in the week.”
Thursday will see the release of the Australian labour figures for June, and the market is bracing itself for soft numbers.
The minutes from the US Federal Reserve Federal Open Market Committee meeting released on Thursday is expected to cause some minor movements, while speculation of weaker than expected numbers from the Chinese GDP on Friday could put the Australian dollar under pressure.
“The NAB is expecting weaker Australian labour figures on Thursday and this could push the Aussie dollar down,” Ms Lawson said.