FX.co ★ "The Australian" completed the May correction

AUD / USD

As predicted earlier, the optimism of Australian investors turned out to be premature and excessive. As of yesterday, the Australian dollar also went down against the background of the decline in the US dollar index by 0.1%. The reason for this was the decline in raw material prices and weak economic performance of Australia against the background of moderately strong US economy. Private new investments for the first quarter in Australia increased only by 0.4% against the forecast of 0.8%. Investments in construction for the first quarter decreased by 1.3% after -1.1% in the fourth quarter. Lending to the private sector in April increased by 0.4% against 0.5% in March. In New Zealand, the business confidence index in May fell to -27.2 from -23.4 in April.

This morning, Manufacturing PMI based in the AIG estimate for May fell from 58.3 to 57.5. While, good performance is expected on the US labor market in the evening.

We are waiting for the decline in AUD / USD to 0.7440 and further in the range of 0.7375 / 85.

* The presented market analysis is informative and does not constitute a guide to the transaction.