The Australian Dollar appreciated against its US counterpart as optimism returned to the currency. Intraday trading told a different story however with the Aussie sliding to 0.7340, a 2-week low. As the day progressed, the Pair recovered strongly to touch 0.7409, riding the recovery in global risk sentiment. Changing hands this morning at 0.7398, the Australian Dollar looks to break and hold above the 0.74 handle with a keen eye on employment figures to provide the impetus.
The day was a story of two halves with the Asian session mostly subdued. Risk assets were whittled lower, including the Aussie, in the lead to Fed Chair Powell’s second testimony to the Senate. Fortunately for the Pair, Fed Chair Powell’s testimony was mostly bereft of any new clues which saw risk-sentiment recover across the board. Equities and commodity currencies all posted positive gains and saw the Aussie in particular, recover steeply.
Moving forward, the domestic economic calendar has a little more to digest. Initially, all eyes are on Australian employment figures with the Australian economy tipped to add around 17,000 jobs. NAB is also looking to release their quarterly business confidence report and the unemployment rate is due to stay steady at 5.4% today.