FXStreet (Mumbai) – The Australian dollar snapped its overnight recovery mode versus the US dollar in the early Asian hours, pushing AUD/USD to fresh session lows. The Aussie edged lower at Tokyo open, following downbeat Aus consumer sentiment reading which surprised markets on the downside while traders remain cautious ahead of Reserve Bank of Australia’s speech later this session.
AUD/USD retreats from 0.7703 highs
Currently, the AUD/USD pair trades -0.15% lower at fresh session lows of 0.7674, facing rejection at highs reached at 0.7703. The Aussie halted its recovery from the dismal Chinese CPI induced losses and came under renewed pressure after Australia’s consumer sentiment gauge unexpectedly deteriorated in June.
The Westpac-Melbourne Institute Consumer Sentiment index tumbled 6.9% in June from 102.4 to 95.3, where a figure above 100 indicates optimism on the current economic conditions and their personal finances, while a reading below 100 signals pessimism. This was the lowest reading for the index since January.
Meanwhile, markets now turn their focus on RBA Stevens speech due later today. RBA Governor Glenn Stevens is set to speak later this session. Mr Stevens hasn’t indicated the topic of his speech. However, Stevens comments may pose some downside risks as he is likely to reiterate his view on the exchange rate, thereby negatively impacting the AUD/USD pair.
Looking ahead, employment numbers will be published on Thursday, where the market anticipates the jobless rate to stay at 6.2%.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7722 (June 9 High) levels, above which gains could be extended to 0.7790 (June 4 High) levels. On the flip side, support is seen at 0.7643 (June 9 Low) levels from here it to 0.7615 (May 28 Low) levels.
(Market News Provided by FXstreet)