Surging commodity stocks and rallying oil prices pulled back overnight, resulting in a slight fall in the value of the Aussie dollar
The Aussie dollar has lost some steam after the recent recovery in oil and equities fizzled out.
At 0700 AEDT on Wednesday, the local unit was trading at 72.16 US cents, down from 72.29 cents on Tuesday.
Surging commodity stocks and rallying oil prices pulled back overnight, with West Texas Intermediate crude down nearly 5%.
‘A flip-flop in sentiment overnight saw equities and commodities fall amid comments from Iran and Saudi Arabia which dampened expectations of production cuts,’ Westpac strategist Imre Speizer said.
He said the Aussie dollar lost ground as the global mood soured, but momentum remains positive, with 73 US cents the next target.
On the data calendar, Australia has wage and construction activity data for the 2015 final quarter, while a Chinese consumer sentiment report is also due out on Wednesday.