Aussie dollar continues to trade above US$0.66
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Daily Currency Update
The Australian dollar is slightly weaker this morning when valued against the Greenback currently trading at 0.6627 at the time of writing. In Friday's session, the Australian dollar intensified its losses against its peers. Selling pressure emerged from the Asian markets in light of soft June preliminary PMIs from Judo Bank in Australia. On the data front Australia reported weaker preliminary data from the June Purchasing Managers Index (PMI) set, with Manufacturing at 47.5 versus May's 49.7, Services at 51.0 against 52.5, and the Composite rate falling for a third consecutive month to 50.6, from 52.1 in May. Last week The Reserve Bank has kept interest rates on hold at 4.35 per cent. The cash rate target has been steady for seven months now. Interest rates will remain at this level for another six weeks at least, until the RBA Board's next meeting in early August. The RBA board said the path of interest rates that would ensure inflation returns to target in a reasonable timeframe remained uncertain and further rate hikes could be on the cards. Looking ahead this week and on Tuesday we will see the release of the Westpac Consumer Sentiment. On Wednesday the Australian Bureau of Statistics will release the latest monthly Consumer Price Index (CPI) which is expected to fall from 3.6% to 3.5%. Finally, on Friday the Reserve Bank of Australia will release the latest monthly Private Sector Credit report.Key Movers
In the US on Friday we saw the release of monthly US Retail Sales data, which shows shoppers tightened their belts in both April and May. Retail Sales rose 0.1% month-over-month in May but fell below the 0.2% forecast by economists. April’s flat reading, meanwhile, was revised down to a negative 0.2%, according to data from the US Census Bureau, released on Tuesday. Retail Sales ex Autos, declined 0.2% MoM falling below the 0.2% consensus estimate and the downwardly revised 0.1% decline in April. The April figure itself was revised down from a positive 0.2% preliminary reading. S&P Global Manufacturing and Services Flash PMIs in June expanded above estimates. The Manufacturing PMI rose to 51.7, up from 51.3 and exceeding the estimate of 51. The Services PMI increased from 54.8 to 55.1, surpassing the forecast of 53.7. US Existing Home Sales in May were lower than expected, falling to 4.11 million from 4.14 million in April, representing a contraction of -0.7%. Given the backdrop, Gold prices continued to drop, along with technical indicators, pointing to a correction following a three-month rally that began in March and lifted XAU/USD to its all-time high of $2,450.Expected Ranges
- AUD/USD: 0.6500 - 0.6700 ▼
- AUD/EUR: 0.6100 - 0.6300 ▲
- GBP/AUD: 1.8850 - 1.9050 ▼
- AUD/NZD: 1.0700 - 1.0900 ▲
- AUD/CAD: 0.9000 - 0.9200 ▲