Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Australian Dollar Pullback May Continue as Risk Appetite Cools

Australian Dollar Pullback May Continue as Risk Appetite Cools

Ilya Spivak, Head Strategist, APAC

Talking Points:

  • Aussie Dollar underperforms amid risk aversion in overnight trade
  • Euro, US Dollar unlikely to find direction in CPI and UofM reports
  • Sentiment trends to remain in focus, futures hint at risk-off mood

The Australian Dollar underperformed in otherwise quiet overnight trade, with the sentiment-sensitive currency falling alongside share prices. The MSCI Asia Pacific equity index fell for a second consecutive day in a move that may reflect pre-positioning ahead of next week’s event risk.

The regional benchmark hit a two-month high mid-week. The absence of high-profile items on the docket may have inspired a round of precautionary profit-taking as investors rebalance exposure toward a more risk-neutral setting ahead of next week’s news flow, headlined by the FOMC policy announcement.

Looking ahead, the final revision of May’s German CPI figures seems unlikely to generate a significant response from the Euro considering the outcome’s limited implications for near-term ECB policy trends. A downtick on June’s University of Michigan gauge of US consumer confidence may likewise pass with little fanfare, with traders probably unwilling to commit to a directional bias on the US Dollar for now.

This leaves sentiment trends at the forefront. European and US stock index futures are pointing cautiously lower, hinting the risk-off bias may carry through in the final hours of the trading week. “Brexit”-related headline risk remains a wildcard as the fateful referendum looms ever-closer.

Track short-term trading patterns for FX, commodities and stock indexes with the GSI Indicator !

Asia Session

GMTCCYEVENTACTEXPPREV
22:45NZDCard Spending Retail (MoM) (MAY)-0.3%0.5%0.8%
22:45NZDCard Spending Total (MoM) (MAY)-0.6%-1.3%
23:50JPYPPI (MoM) (MAY)0.2%0.1%-0.4%
23:50JPYPPI (YoY) (MAY)-4.2%-4.2%-4.2%
04:30JPYTertiary Industry Index (MoM) (APR)0.6%-0.7%

European Session

GMTCCYEVENTEXPPREVIMPACT
06:00EURGerman Wholesale Price Index (MoM) (MAY)-0.3%Low
06:00EURGerman Wholesale Price Index (YoY) (MAY)--2.7%Low
06:00EURGerman CPI (MoM) (MAY F)0.3%0.3%Medium
06:00EURGerman CPI (YoY) (MAY F)0.1%0.1%Medium
07:00EURECB's Weidmann Speaks in Eltville am Rhine --Low
08:30GBPConstruction Output SA (MoM) (APR)1.4%-3.6%Low
08:30GBPConstruction Output SA (YoY) (APR)-4.8%-4.5%Low
08:30GBPBoE/TNS Inflation Next 12 Mths (MAY)-1.8%Low
12:15EURECB's Constancio, Lane Speak --Low

Critical Levels

CCYSupp 3Supp 2Supp 1Pivot PointRes 1Res 2Res 3
EUR/USD1.11261.12361.12761.13461.13861.14561.1566
GBP/USD1.43171.43971.44281.44771.45081.45571.4637

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES