The Australian dollar has under performed so far today, presently showing a 0.8% decline to the dollar and a 0.9% advance on the yen, which are the two strongest currencies. AUD-USD has posted a 0.7447 low, the lowest level seen since the fist week of the year. Weaker than expected March retail trade data out of Australia, which showed non-food sales contracting 0.5% m/m, and were flat overall, below the median forecast for 0.2% m/m growth and down from the 0.6% growth in the month prior. The data is sympathetic to market narratives for the RBA to leave monetary policy on hold into 2019, and the RBA’s quarterly SMP last Friday which noted lower wage growth while highlighting concerns about the record 190% debt-to-income ratio of households. AUDUSD has trend support at 0.7420-22, and resistance at 0.7499-0.7500.
The USD remains in a robust bid ahead of President Trumps much trailed and anticipated speech on the Iranian Nuclear Agreement. Chairman Powell’s comments earlier added the positive sentiment that swirls the dollar currently. The key USDIndex broke over 93.00 within the last hour posting a new 2018 high at 93.12.
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