- AUD/USD struggles to extend Tuesday’s gains as US stock futures drop.
- Aussie Building Permits suffered a bigger-than-expected decline in May.
- China’s Caixin PMI for June bettered estimates by a notable margin.
AUD/USD is struggling to post big gains above the 0.69 mark following the mixed batch of macroeconomic releases out of Australia and China.
The data published at 1:30 showed Building Permits in Australia fell by 16.4% month-on-month in May compared to forecasts for a 10% decline, having dropped by 1.8% in April. An uptick in permits is considered positive for the AUD, while a low reading is seen as negative.
Meanwhile, China’s Caixin PMI, which surveys small and medium-sized export-oriented units, rose to 51.2 in June, beating expectations for 50.5 and up from May’s print of 50.7. A reading above 50 represents expansion. The above-forecast Caixin data released at 01:45 GMT is supportive of gains in the Aussie dollar.
So far, however, the Caixin PMI has failed to put a bid under AUD/USD, leaving the pair sidelined near 0.6910. The upside is likely being capped by the dismal Aussie Building Permits data. In addition, rising coronavirus numbers in the Australian state of Victoria and the decline in the US stock futures may be keeping the AUD bulls at bay.
At press time, the futures tied to the S&P 500 are reporting a 0.20% drop. AUD/USD will likely pick up a strong bid and extend Tuesday’s 0.5% gain if the futures turn positive during the day ahead. Stock prices did rise on Tuesday after China’s government PMI came in at three-month highs.
Technical levels
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