The Australian dollar’s losing streak is over

• The Australian dollar operated in a thin trading range on Thursday, recovering from earlier losses to close modestly in the black.
  
• The US dollar index hit a 12-month high before reversing in the second half of the session, weighed down by soft US economic data and hawkish language from two major European central banks.
• PMI reports dominate the economic calendar today. OPEC will also meet with an increase in daily production expected.

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The Australian dollar operated in a thin trading range on Thursday, recovering from earlier losses to close modestly in the black.

Here’s the scoreboard as at 7.45am AEST.

AUD/USD 0.7375 , -0.0004 , -0.05%
AUD/JPY 81.03 , -0.12 , -0.15%
AUD/CNH 4.7920 , -0.0036 , -0.08%
AUD/EUR 0.6353 , -0.0005 , -0.08%
AUD/GBP 0.5565 , -0.0002 , -0.04%
AUD/NZD 1.0740 , 0.0021 , 0.20%
AUD/CAD 0.9818 , -0.0007 , -0.07%

And here’s a AUD/USD hourly chart, showing the recent stabilisation in the Aussie after falling in the prior five sessions.

After falling in Asia on the back of renewed weakness in the Chinese yuan, the Aussie managed to crawl higher in European and North American trade, hitting a session high .7393 on the back of broad-based US dollar weakness.

A soft Philadelphia Fed manufacturing survey in the United States, along with hawkish remarks from several European central banks, was enough to spark a reversal in the US dollar, seeing it pull back from 12-month highs struck earlier in the session.

“After reaching new cyclical highs early during the European trading session, USD corrected lower against most major currencies overnight,” said Elias Haddad, Senior Currency Strategist at the Commonwealth Bank.

“USD underperformed the most against NOK and GBP because of more constructive monetary policy outlooks from the Norges Bank and Bank of England (BoE).”

Turning to the day ahead, there’s a smattering of economic data scheduled for release. The latest OPEC meeting will also be held in Vienna.

Japan will release consumer price inflation (CPI) figures for May along with flash manufacturing PMI data for June.

New Zealand migration data will also be released.

Later in the session, highlights include CPIU and retail sales from Canada, French GDP along with flash manufacturing and services PMI report from the Eurozone and US.

OPEC will also meet with an increase in production of one million barrels per day widely expected by markets.

Source: https://www.businessinsider.com.au/fx-currency-aud-australia-dollar-boe-opec-2018-6