Aussie dollar continues to trade above US$0.66

Daily Currency Update

The Australian dollar is slightly weaker this morning when valued against the Greenback, currently trading at 0.6629 at time of writing. It is possible the AUD/USD pair has entered a sideways trend, with a range high at the May 26 level of 0.6680 and a floor at 0.6591. Earlier this week the Aussie dollar was boosted by the inflation rate, which came in above expectations, rising to 3.6% in the 12 months to April. The consumer price index rose a touch from the year-on-year March figure of 3.5%, the Australian Bureau of Statistics said. Economists expected the monthly price gauge, which can be volatile and is not as comprehensive as the quarterly indicator, to moderate a little to 3.4% in April. The Reserve Bank of Australia remains alert to inflation risks as it works to bring inflation back within its 2-3% target range. Central bank forecasts have inflation taking until late 2025 to fall within the target range. Yesterday the total number of dwellings approved fell 0.3 per cent in April, after a 2.7 per cent rise in March, according to seasonally adjusted data released today by the Australian Bureau of Statistics (ABS). The value of total buildings approved fell 3.8 per cent, following a 13.8 per cent rise in March. The value of total residential buildings fell 3.2 per cent, comprised of a 3.8 per cent drop in new residential buildings and a 0.4 per cent rise in alterations and additions. Looking ahead today and the Reserve Bank of Australia will release the Private Sector Credit report. Borrowing and spending are positively correlated - consumers and businesses tend to seek credit when they are confident in their future financial position and feel comfortable spending money.