Dollar steady ahead of busy day


3D chart, graph, upThe Australian dollar has traded within a tight range overnight as investors await key economic data and a speech by Reserve Bank governor Glenn Stevens.

At 0700 AEDT on Thursday, the local currency was trading at 92.42 US cents, virtually unchanged from 92.44 cents on Wednesday.

It’s a big week for economic news and data with the European Central Bank policy decision on Thursday night and the US non-farm payrolls on Friday.

Locally, all eyes on Thursday would be on February retail sales and trade figures being released by the Australian Bureau of Statistics at 1130 AEDT, Arab Bank treasury dealer, David Scutt said.

“(It was) a quite session for the Australian/US dollar overnight with the pair operating in a relatively thin band between 92.32 and 92.63 US cents,”  Scutt said.

“All attention today will be on the retail sales and trade figures.

“While strong readings will see the Aussie push higher initially, with the US data starting to strengthen and March non-farm payrolls released tomorrow evening, we expect that any initial surge will be faded as investors look to book profits following the Aussie’s stellar run of late.

“Conversely, should the data miss, expect the pair to give back ground, albeit modestly, given Asia’s insatiable appetite of late.”

Investors will then turn their attention to Brisbane where Mr Stevens will address the Australia-American Chamber of Commerce.

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