After posting 0.6890- key resistance, late last week against the US Dollar (USD), the Aussie extended falls to 0.6750 midweek as Chinese data failed to impress. The Chinese Yuan dropped after discouraging “FDI” data showing foreign investment into China slowed. Australian employment figures pushed up the AUD to 0.6850 area post the release, while the unemployment rate remained at a stubborn 3.5%, the participation rate only fell slightly from the May record to 66.8%. This should raise questions over an RBA raising rates at their next meeting. We expect the AUD to push up into the weekly close to retest 0.6800 levels. Next week’s economic docket full with the Federal Reserve monetary policy leading the way with the Fed resuming their rate hikes. We expect a rise from 5.25% to 5.5% and big dollar buying.
The current interbank midrate is: AUDUSD 0.6776
The interbank range this week has been: AUDUSD 0.6749- 0.6845