The Australian Dollar (AUD) has been mostly considered as a risk barometer and declines in times of market uncertainty. Another such risk gauge is the US 10-year treasury yield that slipped 2 basis points to 2.122% recently.
The US Dollar (USD) on the other hand ignored lesser than expected consumer price index (CPI) as investors rushed to the greenback in search of safety while dovish comments from the European Central Bank (ECB) board member provided additional strength to the momentum.
Looking forward, Australia’s May month employment data could portray election month push to the unemployment rate mark which is likely to slip to 5.1% from 5.2%. However, employment change is likely to soften to 17.5K from 28.4K.
Late May month lows around 0.6900 and 0.6860 are flashing on the sellers’ radar unless the pair manages to cross 0.6960. However, 50-day simple moving average (SMA) near 0.7010 could question the pullback then after.