The Australian Dollar opens this morning marginally lower than yesterdays’ open as commodity currencies underperformed in overnight trading. It was a wild ride for the Aussie, which initially saw very positive employment figures drive up its value to 0.7441, only for the American trading session to unwind those gains and then some. Changing hands this morning at 0.7357, the Aussie looks to tread water to close out the working week.
The big headline of the day was, of course, the 50.9k jobs that were added to the Australian economy. The news soundly beat all analyst expectations and saw the Australia Dollar appreciate significantly to 0.7441. From there it was a day to forget with the industrial metal prices reflecting slowing growth concerns in China. Copper fell 1.5%, taking its declines since the start of June to 17%. Zinc, Nickel and Lead prices also slid in the decidedly bearish market. Compounding, the commodity concerns was the softness of the Chinese Yuan which hit a new low for the year. Overall, the Aussie fell over 1.5% from its high at 0.7441.
Looking forward, the Aussie is set to enjoy a quiet domestic calendar to close out the week, a welcome environment considering the recent trading. Off-shore, risk-events are relatively limited with attention mainly focused on the G20 summit kicking off today in Buenos Aires.