Dollar treading water ahead of global data
The Australian dollar has closed flat after a quiet domestic session, with investors focused on the upcoming release of local and overseas economic data.
The local currency was at $US1.0553, little changed from $US1.0548 at Tuesday’s close.
During the day, the Australian dollar moved in a tight range between $US1.0580 and $US1.0549.
The currency opened the Australian trading day at 0700 AEDT at $US1.0561 after moving in line with gains on Wall Street during the overnight offshore session.
However, the currency drifted back towards $US1.055 as market players stayed on the sidelines ahead of some important economic data releases both at home and abroad in the days ahead.
‘‘It’s very, very quiet,’’ Rochford Capital director of market risk Derek Mumford said.
‘‘The Australian (dollar) has just been drifting around really.’’
‘‘There is a lot of data out tonight in the United States and big numbers on Friday from China.’’
Figures on US industrial production, inflation and housing were due for release during Wednesday night’s (AEDT) offshore session, with market players also expected to focus on any progress over the US debt ceiling.
Meanwhile, Chinese economic growth, retail sales and industrial production data was due out on Friday.
Moves were also limited ahead of domestic jobs data for December due out on Thursday.
The Japanese yen continued to appreciate, following comments on Tuesday from a Japanese government minister who said a stronger yen was adversely impacting on the livelihoods of the Japanese people.
The Australian dollar was at 93.03 yen, down 0.9 per cent from 93.87 yen previously.
In terms of local data published on Wednesday, Mr Rochford said the consumer confidence report from Westpac and the Melbourne Institute was in line with expectations, while new car sales figures were strong.