AUD/USD has posted slight gains on Monday, as the pair trades slightly above the 0.94 line late in the European session. Today's highlight is US Pending Home Sales, with the markets braced for a decline in the June release. There are no Australian releases on Monday.
The Australian dollar often takes its riders on roller coaster rides, but AUD/USD has been unusually subdued, with little movement since early June. Strong US numbers have not translated into gains for the US dollar, as the Aussie continues to trade at high levels and the occasional jab buy the RBA that the Aussie is overvalued has failed to push the currency to lower levels. This week's key events out of Australia are Building Approvals and PPI, and unexpected readings could shake up AUD/USD.
The US ended the week on a high note, courtesy of strong data from the manufacturing sector. Core Durable Goods Orders jumped 0.8%, beating the estimate of 0.6%, and rebounding nicely from a decline of 0.1% in May. Durable Goods Orders followed suit, posting a gain of 0.7%, compared to a weak reading of -1.0% last month. This easily surpassed the estimate of 0.4%. Unemployment Claims tumbled last week, as the key indicator fell to 284 thousand, its lowest level since February 2008. This surprised the markets, which had expected a reading of 310 thousand. The strong release continues a string of solid employment data, which has helped the dollar. As well, positive news on the employment front is bound to increase speculation about a rate increase by the Federal Reserve.
AUD/USD 0.9410 H: 0.9414 L: 0.9385
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