9 Jun 2015
AUD/USD boosted by Aus data, runs into offers 0.7710/20
FXStreet (Bali) - AUD/USD popped up to a fresh session high of 0.7722 only to retreat towards 0.77/7705 following an upbeat Australian NAB business survey, which saw both confidence and conditions improve significantly on federal budget and record low rates.
China CPI comes below expectations
While having less of an impact on AUD volatility, as the data could be perceived as both positive and negative for the Aussie, China's inflation figures continued to disappoint. CPI (MoM) registered -0.2% in May vs 0% exp, while the YoY reading for May came in at 1.2%, which is also below forecasts of 1.3%. Meanwhile, China Producer Price Index (YoY) came in at -4.6% vs forecast of -4.5%.
AUD/USD: Further upside a major challenge
AUD/USD has run an impressive recovery off 0.76, where macro bids are rumored, following a stellar US NFP last Friday, making the ongoing upleg not easily sustainable. Bearing in mind that Monday's USD long squeeze was mainly a withdraw of liquidity on low volume, coupled with expected improved data in the US later this week, should see further gains hard to come by. Sellers will take full control of the market once again, should they reclaim current point of control circa 0.7660/70.
China CPI comes below expectations
While having less of an impact on AUD volatility, as the data could be perceived as both positive and negative for the Aussie, China's inflation figures continued to disappoint. CPI (MoM) registered -0.2% in May vs 0% exp, while the YoY reading for May came in at 1.2%, which is also below forecasts of 1.3%. Meanwhile, China Producer Price Index (YoY) came in at -4.6% vs forecast of -4.5%.
AUD/USD: Further upside a major challenge
AUD/USD has run an impressive recovery off 0.76, where macro bids are rumored, following a stellar US NFP last Friday, making the ongoing upleg not easily sustainable. Bearing in mind that Monday's USD long squeeze was mainly a withdraw of liquidity on low volume, coupled with expected improved data in the US later this week, should see further gains hard to come by. Sellers will take full control of the market once again, should they reclaim current point of control circa 0.7660/70.