June 19, 2012
Thanks to stronger than expected Australian economic data, the Aussie was able to outpace both the Greenback and the Japanese yen in yesterday's trading. AUD/USD closed a couple of pips up from its 1.0117 open price while AUD/JPY ended the day 2 pips above the 80.00 handle. Will it be able to hold on to its recent gains?
Australia reported a 2.4% jump in new motor vehicle sales for May, a huge improvement over the 1.0% decline seen during the previous month. This report reflects rising consumer confidence because demand for expensive goods such as cars and SUVs typically rises when consumers are feeling financially secure. Although this report doesn't usually move the Aussie that much, the lack of hard-hitting reports yesterday left the Australian dollar more sensitive to this medium-tier release.
The RBA is set to release the minutes of their most recent monetary policy meeting at 1:30 am GMT today. This could shed some light on the central bank's decision to keep rates on hold during their policy decision earlier this month and possibly provide some hints on when the RBA could implement their next rate cut. Now that's something I'm sure you don't want to miss out on!
"The only cable I watch is the pound baby."