The Australian dollar remains under pressure on Monday, as AUD/USD trades at in the mid-0.87 range. The Aussie is currently trading at 9-month lows. On the release front, today’s highlight is Pending Home Sales. After a sharp gain of 3.3% in July, the markets are braced for a sharp downturn, with an estimate of -0.4%. The only Australian release is Private Sector Credit, a minor event.
The Aussie continues to flounder, and had an awful week, shedding about 180 points against the sharp US dollar. For the month of September, the currency has plunged a remarkable 600 points. Will the downward spiral continue this week? The RBA should be pleased at the Aussie’s vanishing act, as the central bank has often expressed its unease at the currency’s high value, which has weighed on economic growth.
In the US, Core Durable Goods Orders posted a strong gain of +0.7%, bouncing back from the previous reading of -0.8%. Durable Goods Orders continues to take its riders on a roller coaster ride, plunging 18.2% in August, compared to a huge gain of 22.6% a month earlier. Unemployment Claims rose to 293 thousand, within expectations.
AUD/USD 0.8731 H: 0.8747 L: 0.8684
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