The Australian dollar fell overnight against the U.S. dollar, with the greenback surging against all other major currencies.
At the Asian open, one Australian dollar bought 76.50 U.S. cents, down from its robust 76.74 on Tuesday. Chris Weston, chief market strategist at IG, said in a note that although the Australian dollar was indeed pushed higher by the "undeniably strong" NAB data on business conditions and confidence, speculators should temper their expectations about the dollar.
"I felt the prospect of this data point having a material influence on the AUD was minimal, but then few expected a read that was far more thematic with an economy that needs tighter monetary policy," Weston said.
"AUD/USD has traded in a range of $0.7696 to $0.7618, but for AUD traders the better trade (in my opinion) continues to be short EUR/AUD and long AUD/JPY." At 0848 local time AEDT, one Australian dollar buys 76.58 U.S. cents.
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