The Australian dollar was weaker yesterday, and fell against most major peers. Despite the fact that the currency is looking oversold in the short-term, the Aussie has failed to meaningfully rebound. While the currency appeared to be rebounding last week, lower-than-expected retail sales have dragged the currency back down. Our medium-term outlook on the Australian dollar remains bearish.
AUD/USD is currently trading just below 0.7670. Looking at EUR/AUD, the pair is currently just below 1.5150. The GBP/AUD exchange rate is currently above 1.7130.
This is another pretty light week for the Australian dollar. On Monday, TD Securities year-over-year inflation came in at 2.6% (vs. 2.5% previously). The RBA maintained its cash target rate at 1.5%. The AiG Performance of the Construction Index (53.2 vs. 54.7) was lower than the last print. On Thursday, we’ll see Home Loans figures. Finally on Friday, we’ll get a statement from the RBA on monetary policy. Last week, retail sales figures widely missed expectations.