Overnight, the AUD lost ground against all of the majors, with the biggest loss being against the Greenback due to some stronger than expected US data.
It was a big night of economic releases out of the USA overnight. The US Gross Domestic Product figure was announced and the printed figure was 4.0% which was a massive jump from the previous month’s annualised figure of negative 2.9% and a full percent better than the expected figure. The USD Federal Open Market Committee Rate Decision was announced last night and the interest rate decision was kept on hold at 0.25% as expected.
Today Australia will comment on the Building Approval levels for the month of June in conjunction with some low-tier data relating to the Private Sector Credit. The Manufacturing Purchasing Managers Index (PMI) figure out of China tomorrow is likely to impact the AUD more significantly than the domestic data out today though.
There is abundance of high-tier economic releases globally this evening and tomorrow. Germany, the strong-arm of the European economy will announce their official Unemployment Rate and Employment Change figures prior to the Euro-Zone printing their current inflation figure estimate and Core CPI. The Consumer Price Index (CPI) figure was a major market mover over the past couple of weeks and the Euro is likely to react positively with a beat to these figures. The Australian Dollar continues to trade around 2014 highs against the Euro despite it’s losses overnight, so a lower than expected figure will almost certainly see it touch upon this year’s highs again.
The AUD to USD currency pairing is likely to finish the week experiencing a large degree of volatility. Tomorrow evening the US will announce the Unemployment Rate and the Change in Non-Farm Payrolls. With only lower-tier domestic data to be released out of Australia for the remainder of the week, the Australian Dollar value is likely to either strengthen or diminish, depending on the results from the international economic releases rather than from any strong local economic indicators.