Currency Update - Wednesday 12th June 2019

AUD

The AUD traded flat the past 24 hours, currency ranges were muted.  Yesterday's Business Confidence figures bounced back to a reading of 7 (0 prev), this could be on account of the Liberal win last month.  Commodity prices were slightly higher for the most part, oil price falling marginally.  The ASX opens at 12 year highs at 6555 this morning, stocks in general had a quiet evenings trade much like currencies.  Today sees the release of Westpac Consumer Sentiment and Chinese CPI and PPI data.  Tomorrow's local employment data could set hearts racing if a negative number.  The RBA are watching this number very closely as we know. AUD support is fund at 0.6940, resistance is at 0.7040.  

USD

The USD was becalmed overnight, the DXY remaining at 96.71 and trading in a 20 pip range against the local unit.  To the data and PPI for May printed as expected.  Trump was on the wires berating the Fed for not lowering interest rate settings and saying China wants to make a deal badly.  Stocks rallied but trimmed gains as trade war fears spread through markets, S&P closing -0.1%.  All in all another quiet session.  May's CPI data is released this evening. 

EUR

Eurodollar climbed 0.3% as Trump said the Euro was undervalued, European equities performed better than U.S bourses, the DAX outperforming at +0.9%.  EU Sentix Investor Confidence fell -3.3% (2.3% exp), ECB President Draghi is on the wires this evening which could cause some volatility.  Draghi was less dovish than expected at the last ECB monetary policy meeting.  AUD/EUR closed slightly lower at 0.6144.  All it all in was another quiet evening for data and volatility in general. 

GBP

The AUD opens marginally lower against the Pound this morning at 0.5471 despite U.K employment data remaining at record lows of 3.8% for April. Average Weekly Earnings printed at 3.1% (3% exp).  BOE's Broadbent echoed his colleague by saying rates may have to rise faster than expected, sending the Pound higher against the USD. Data is think on the gound this evening, housing data released tomorrow. 

NZD

The Kiwi opens flat against the AUD and lost a little ground against the USD at 0.6586.  With no data to report for yeasterday or today the Kiwi will react to movements in the majors and trade war sentiment.  

Today’s data

AUD:

• June Consumer Confidence 

USD:

• May CPI 

CNY:

May CPI & PPI