The Australian Dollar has made minor losses against the US Dollar today, in between two key national confidence scores.
NAB Confidence Drop sees AUD USD Drop Main
The latest Australian Dollar losses have come after a drop in the NAB business confidence index.
The decline in the index may have been due to concerns about Australia’s future trading relationships, which have recently come into question with regards to China, the biggest AU trading partner.
US Dollar Makes Steady Gains ahead of Major Congress Event
The US Dollar’s latest advance against the Australian Dollar has mainly been due to AUD weakness, given the lack of positive US data at present.
Recent political news has seen Donald Trump’s ‘travel plan’ blocked again, which has frustrated the President but raised optimism in the democratic process.
Australian Dollar Advance Possible on Westpac Confidence Recovery
Confidence data could raise the Australian Dollar’s value this week, with Wednesday bringing the Westpac consumer confidence index for June.
This previously showed a -1.1% dip in confidence, so a major positive figure could be enough to restore confidence in the Australian economy.
Further ahead, Thursday will bring major Australian jobs data for May. The unemployment rate is predicted to stagnate at 5.7%, but this outcome is not set in stone.
If the employment change rises by more than the forecast 10k persons then the unemployment rate could drop, which might trigger a sharp AUD USD advance.
Upcoming US news will mainly be focused on the testimony of Jeff Sessions in Congress.
As the US Attorney General, Sessions is a high-ranking figure and is expected to face questions over his contact with Russian officials.
The stakes are still high for a potential scandal to erupt, but the Sessions questioning could end up being a non-event if it fails to provide a ‘smoking gun’.
High-impact US news after this event will be Wednesday’s Fed interest rate decision. The Federal Reserve is widely expected to raise the US interest rate, from 1% to 1.25%. Such a move could trigger a minor US Dollar appreciation.
A rally is not too likely on such a decision, because a Fed rate hike in June has been so widely expected for such a long time.
Recent Interbank AUD USD Exchange Rates
At the time of writing, the Australian Dollar to US Dollar (AUD USD) exchange rate was trading at 0.7534 and the US Dollar to Australian Dollar (USD AUD) exchange rate was trading at 1.3271.