The Aussie dollar has fallen slightly following a rebound in risk appetite, with analysts saying markets are concerned with economies that have exposure to China
The Aussie dollar is softer against the greenback following a rebound in risk appetite.
At 0700 AEDT on Monday, the local unit was trading at 70.04 US cents, down from 70.25 cents on Friday.
ANZ senior FX manager Sam Tuck said the greenback benefited from a positive risk environment on Friday night with equities, yields and commodities higher.
‘(But) the Aussie dollar was relatively immune to that trend,’ he said.
Mr Tuck said that suggests there’s still a bit of investor fear towards commodity currencies despite easing worries about a Chinese hard landing.
‘Markets are still concerned with economies that have exposure to China,’ he said.
However, Westpac Strategist Imre Speizer expects the currency to be well supported this week as global sentiment improves.
‘The Australian dollar (is) on a positive footing today, targeting 70.50 US cents,’ he said.
Mr Tuck said traders would be looking forward to local fourth quarter inflation figures due out on Wednesday.
‘That’ll probably be the defining factor for the Australian dollar,’ he said.
‘Markets will note the global trends in inflation which have been low and wonder whether that’ll happen to the Aussie.’
AAP
