FX News – May 29: USD Rallies Vs AUD & EUR

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The AUD continued to struggle against the USD in today's Asian session as it sunk further to the 0.95 level. The AUD/USD is currently trading at around 0.957, the lowest level is has been so far in 12 months.

Australia's Construction Work Done for Q1 was released earlier and revealed disappointing data, which fell from 0.1% to -2.0%. This was a dramatic difference from analysts’ expectations of a rise to 1.0%. Its New Home Sales data also slipped from the previous 4.2% to 3.9%.

In contrast, the US Home Price Indices showed an improvement in the country's residential real estate market. From 9.3%, it rose to 10.9%. Meanwhile, its May Consumer Confidence Data also showed rosy results as it rose from 69.0 to 76.2, the highest figure in over five years. Both data show further signs of recovery from the US.

Initial resistance for the pair is seen at 0.9658, followed by 0.9682, while initial support is seen at 0.9556, followed by 0.9532.

Meanwhile, the EUR/USD slipped during yesterday's trading, aided by positive US data and an increased appetite for risk. The pair fell by about 0.57%, closing at around 1.2850. Analysts expected a further slide to 1.26 in the next three months should the US economy sustain its rally.  The pair is currently trading just below 1.2859, with initial resistance seen at 1.2903 followed by 1.2935. Meanwhile, initial support is seen at 1.2802, followed 1.2770. 

While this will be a relatively quiet week, here are some more events that need checking out:



Unemployment data - Germany, 7:55AM GMT

CPI (YoY) - Germany, 12:00PM GMT

BoC interest rate decision - Canada, 2:00PM GMT


GDP Annualised (Q1) - US, 12:30PM GMT

GDP Price Index (Q1) - US, 12:30PM GMT

Personal Consumption Expenditures (QoQ, Q1) - US, 12:30PM GMT

National Consumer Price Index (YoY) - Japan, 11:30PM GMT


CPI - Core (YoY) - EU, 9:00AM GMT

By FX Strategy Team, Published on 29th of May 2013
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