Global Themes

AUD

Aussie pressure returns as greenback stages comeback

The AUDUSD fell from two-week highs overnight as the US dollar staged a comeback from last week’s selldown.

The US dollar – recently stronger as US interest rates surged higher – paused at the end of last week after US consumer inflation prices missed expectations. The USD eased last week after gaining almost 5.0% over the last month.

However, the greenback started the new week stronger, with the US dollar index rebounding from two-week lows.

AUD losses

The AUDUSD fell 0.2% in its first losing session since 8 May.

The Aussie was weaker in most other markets.

The AUDEUR fell further after staging a sharp reversal on Friday. The AUDEUR was down 0.1%.

The Aussie fell in most other European markets with the AUDCHF down 0.2% and the AUDGBP down 0.3%.

The Aussie continued to gain sharply versus the New Zealand dollar after last week’s Reserve Bank of New Zealand meeting saw the new RBNZ governor Adrian Orr strike a more cautious tone.

The AUDNZD climbed 0.6% as it hit the highest level since 1 February.

RBA minutes

Today’s market will be focused on the Reserve Bank of Australian minutes with details from the RBA’s 1 May meeting due at 11.30am AEST.

The RBA, which is carefully watching wages and jobs data, will get further information about wage prices tomorrow and the monthly employment report on Thursday.

From overseas, European growth figures, due 7.00pm, and US retail sales, due at 10.30pm, can drive a big session of potential moves overnight.

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