AUD/USD (current price: 0.7487)
The Australian Dollar got back above the key 0.75 level on Tuesday as it was helped by the better than expected New Zealand Trade Balance number, which pointed to a resilient demand from China. The rally faltered later on, as oil and gold remained weak and as risk-on assets traded sideways before the FED. The Australian CPI came in at 0.4% today, in line with expectations, following last quarter’s deflationary print of -0.2% that was one of the main reasons of the May rate cut by the RBA.
Our assessment: AUD/USD is still well below its prior high at 0.7650 but the pair showed some strength so far this week after last week’s steep drop, which followed the dovish RBA statement.
