AUD/USD – Australian dollar flat despite strong business confidence report

AUD/USD is showing little movement in the Tuesday session. In North American trade, AUD/USD is trading at 0.6955, down 0.07% on the day. On the release front, Australian NAB Business Confidence jumped to 7, after two straight readings at zero. It was the indicator’s strongest showing in 10 months. Later in the day, Australia releases Westpac Consumer Sentiment. In the U.S., producer price index reports matched their estimates. PPI dipped 0.1%, down from 0.2% a month earlier. Core PPI edged up 0.2%, up from 0.1% in the previous release. Wednesday will be a busy day. The U.S. releases consumer inflation and Australia releases MI inflation expectations and employment change.

The Australian business sector appears in a buoyant move, according to the latest NAB business confidence survey. The indicator climbed to 7 in May. The business sector was pleased with the unexpected victory of the conservative coalition in the general election last month, as the conservatives are considered more pro-business. Will the Westpac consumer confidence survey follow suit? If so, the Aussie could gain ground.

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.

Green Across the Board as Trade Optimism Brews and Trump attacks Fed

GBP/USD – Buoyed by UK jobs data

AUD/USD Fundamentals

Monday (June 10)

  • 21:30 Australian NAB Business Confidence. Actual 7

Tuesday (June 11)

  • 5:16 US NFIB Small Business Index. Estimate 102.3. Actual 105.0
  • 8:30 US Core PPI. Estimate 0.2%. Actual 0.2%
  • 8:30 US PPI. Estimate 0.1%. Actual 0.1%
  • 19:25 RBA Assistant Governor Kent Speaks
  • 20:30 Australian Westpac Consumer Sentiment

Wednesday (June 12)

  • 8:30 US CPI. Estimate 0.1%
  • 8:30 US Core CPI. Estimate 0.2%
  • 21:00 Australian MI Inflation Expectations
  • 21:30 Australian Employment Change. Estimate 16.0K
  • 21:30 Australian Unemployment Rate. Estimate 5.1%

*All release times are DST

* Key events are in bold

AUD/USD for Tuesday, June 11, 2019

AUD/USD June 11 at 9:55 DST

Open: 0.6961 High: 0.6967 Low: 0.6947 Close: 0.6955

AUD/USD Technical

S3 S2 S1 R1 R2 R3
0.6686 0.6744 0.6825 0.6968 0.7085 0.7190

AUD/USD showed limited movement in the Asian and European sessions. The pair has posted small gains 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

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.