The Aussie was not helped by data showing Australian business investment fell 0.9% in the first quarter when analysts had looked for a rise of 1.5%.
The U.S. dollar edged higher in early European trade Thursday, but remained near a one-month low amid concerns aggressive tightening by the Federal Reserve may already be slowing economic growth. The minutes from the early May Fed meeting, released Wednesday, indicated that the central bank policymakers will be sticking to a plan to raise rates by a half-percentage point at its next two meetings starting next month, largely as expected. The scaling back of Fed tightening bets has followed slowing economic growth, with new home sales falling almost 17% last month and retailers reporting disappointing results as consumers scale back discretionary spending as the prices of essentials like food and petrol soar.
The Australian dollar initially tried to rally during the trading session on Wednesday but gave back the gains to show signs of weakness again. In fact, we broke down below the bottom of the previous hammer.
It looks as if momentum has shifted in favor of the Aussie and Kiwi amid fears over the strength of the U.S. economy.
The Australian dollar has pulled back a bit during the trading session on Tuesday as we continue to see a lot of noise just above.
The Australian dollar has rallied significantly during the trading session on Monday, showing signs of life again. However, we are still sitting below significant resistance.
Trader reaction to the 50% level at .7047 is likely to determine the direction of the AUD/USD early Monday.
While it’s a quieter week ahead on the economic calendar, private sector PMIs will give the markets some idea of how the global economy is fairing.
The Australian dollar has rallied significantly during the week, breaking above the 0.70 level. However, we are still very much in a downtrend.
The Australian dollar initially fell during trading on Friday, to test the 0.70 level. This is an area that of course is a large, round, psychologically significant figure, so therefore it is worth noting that the area held.