AUD declines as the US dollar rises. Despite a solid data. In order to contain inflation, Fed’s Powell made it apparent that further work has to be done.
AUD waned despite solid Retail Sales
On the strength of strong retail sales data, the Australian dollar attempted to surge above, yet the spike fizzled out quickly.
Retail sales during May came in Thursday at 0.7% m-m. Far higher than the predicted 0.1% & 0.0%. Prior to declining, AUDUSD exceeded 0.6620.
The US dollar also appeared to reaffirm itself following remarks made by Fed’s Jerome Powell the day before. Who said that “even though the monetary policy is limiting, it might not be tight and sufficient
The remarks were delivered in Portugal last night, with Christine Lagarde of the ECB and Andrew Bailey of BoE both take a hardline approach. Contrary to this, Kazuo Ueda of the BoJ has said that he will keep a sheer-loose policy framework.
Gold remains below US$ 1,920 as Treasury rates are up throughout the curve by one or two bps
The majority of APAC equities indexes have remained relatively stable, although Hang Seng Index has since gone down significantly.
AUD Technical Perspective
The grouped nature of all (SMA) may support the argument for greater range trading for the AUDUSD pair.
The 0.6668 to 0.6730 range corresponds towards the 10-,21- 34- 55-,100-, 200- & 260-day Simple Moving Averages
Similar resistance could be present at the breaking of 0.6710 area after a likely barriers region within the band of 0.6800 to 0.6820. Resistance might be found higher, in the area of 0.7011 to 0.7030 prior peak periods, and before a grouping area between 0.0.7137 – 0.7157.
Support may be found within the breaks of 0.6574 & 0.6565 or the prior low of 0.6458 from the end of May.
