AUD/USD is slightly lower in the Wednesday session. In North American trade, AUD/USD is trading at 0.6950, down 0.17% on the day. On the release front, Australian Westpac Consumer Sentiment declined 0.6% in June, after a gain of 0.6% in the May release. In the U.S., the focus was on consumer inflation indicators. CPI slowed to 0.1%, down from 0.3% in the previous release. This matched the estimate. The core reading posted a gain of 0.1% for a fourth straight month, shy of the forecast of 0.2%. Later in the day, Australia releases employment change and the unemployment rate. On Thursday, the U.S. releases unemployment claims.
Australia’s Westpac Consumer Confidence declined in June by 0.6%. This was a disappointment, as analysts had hoped that the recent RBA rate cut would energize consumers. There was better news from the business sector, as the NAB business confidence survey climbed to 7 points in May. Aside from the rate cut, the business sector was pleased with the shock victory of the conservative coalition in the general election last month, as the conservatives are considered pro-business.
There were fears that President Trump would slap Mexico with new tariffs, opening up another trade war front. The tariffs were set to take effect on Monday, but the U.S. suspended the tariffs, after high level talks helped defuse the latest crisis. As well, G-20 finance ministers agreed on a joint communique to reduce trade tensions. With President Trump and President Xi of China meeting at the G-20 summit in Japan in late June, we could see progress in the bitter trade dispute between the world’s two largest economies.
Tuesday (June 11)
- 20:30 Australian Westpac Consumer Sentiment. Actual -0.6%
Wednesday (June 12)
- 8:30 US CPI. Estimate 0.1%. Actual 0.1%
- 8:30 US Core CPI. Estimate 0.2%. Actual 0.1%
- 21:00 Australian MI Inflation Expectations
- 21:30 Australian Employment Change. Estimate 16.0K
- 21:30 Australian Unemployment Rate. Estimate 5.1%
Thursday (June 13)
- 8:30 US Unemployment Claims. Estimate 215K
*All release times are DST
* Key events are in bold
AUD/USD for Wednesday, June 12, 2019
AUD/USD June 12 at 11:50 DST
Open: 0.6961 High: 0.6963 Low: 0.6942 Close: 0.6950
AUD/USD posted small losses in the Asian session. The pair ticked higher in the European session but then retracted. AUD/USD is slightly lower in North American trade
- 0.6825 is providing support
- 0.6968 is a weak resistance line
- Current range: 0.6825 to 0.6968
Further levels in both directions:
- Below: 0.6825, 0.6744 and 0.6686
- Above: 0.6968, 0.7085, 0.7190 and 0.7240
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