- Data from Australia points to dismal business confidence.
- US Dollar Index stays calms below 97.50 on Tuesday.
- Coming up: Import/export price index from the U.S. and consumer confidence index from Australia.
The AUD/USD pair lost 50 pips on Monday and touched its lowest level since the flash crash of January 2nd at 0.6939. With the pair struggling to make a meaningful recovery on Tuesday, it continues to trade near that level, waiting for the next catalyst.
The escalating trade tension yesterday following China’s decision to impose tariffs on $60 billion worth of U.S. imports starting June 1st weighed on the antipodeans such as the AUD and the NZD. During the early trading hours of the Asian session, the National Australia Bank’s Business Confidence Index came in at 0 in April to miss the market expectation of 1 while the Business Conditions Index dropped to 3 from 7 in March to make it difficult for the AUD to stage a meaningful recovery.
On the other hand, the US Dollar Index, which closed the previous day with small gains after slumping to a multi-week low near 97, is staying relatively calm in the absence of fresh developments surrounding the U.S.-China trade dispute. Later in the session, import and export price index data from the U.S. will be looked upon for fresh catalysts.
From Australia, the Westpac Consumer Confidence Index and first-quarter wage price index will be released in the Asian session on Tuesday.
Technical levels to consider
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