After a big day last Friday, the Australian dollar is taking a breather this morning. Earlier, the Aussie rose on strength in the Chinese yuan. Looking at the yuan in recent times, the currency is mostly flat against most global currencies. As AUD has been strongly correlated to the fortunes of the yuan lately, the currency is likely to follow.
AUD/USD is currently trading above 0.7880. Looking at EUR/AUD, the exchange rate is now below 1.50, and is currently below 1.4960. The Aussie has been a big mover against the euro, as the currency strengthened as the euro weakened. Finally, the pound is up against AUD this morning, having sold off last Friday. The GBP/AUD exchange rate is currently below 1.6880.
This is a fairly light week for the Aussie in terms of economic data. RBA minutes set to be announced on Tuesday are unlikely to contain many surprises given that the Bank remains on hold. On Wednesday, we’ll get changes in employment and the unemployment rate. Lower-than-expected numbers will drive down already low rate hike expectations. Last week, consumer and business confidence surveys as well as housing loans numbers were above expectations.