Dollar holds above US76c

The local unit has given up some overnight gains as the market awaits Chinese data.

The Australian dollar held above US76 cents in early afternoon, amid a choppy session, as markets prepare for the release of Chinese trade data.

At 1.10pm (AEST) on Wednesday, the local unit was trading at US76.01 cents, down from US76.24c on Tuesday.

The Australian dollar has given back most of its overnight gains as profit taking sets in ahead of the release of China’s official foreign trade data for June later on Wednesday, OANDA Australia and Asia Pacific senior currency trader Stephen Innes said.

“Traders may be anticipating some negative repercussions from this week’s yet to be released China June quarter GDP figures, especially since China has been a primary source of market bedlam in the past,” Mr Innes said.

“Traders will be keeping a close eye on risk sentiment and news out of Tokyo on the stimulus front.”

AAP