The Australian Dollar was under pressure again Thursday after official data showed the unemployment rate remaining at an elevated level in May when financial markets had looked for it to pare back an earlier increase, which has encouraged speculation of further interest rate cuts to come.
The Aussie currency has recently failed to overcome a key technical barrier to further gains and is now likely to beat a retreat from six-week highs struck at the beginning of June according to analysts at Commerzbank, which could help support the Pound-to-Australian-Dollar rate.
The Australian Dollar slumped into the new week Monday after official data revealed a surprise and steep fall in the value of Chinese goods imports took place last month, stoking fears for the health of the world's second largest economy and putting the Aussie under pressure again.
The Australian Dollar will probably continue to defy gravity and bounce in the short-term, but eventually, the currency will recapitulate and continue its longer-term downtrend to new lows, says asset manager AMP Capital.
The Australian Dollar is on shaky ground, according to analysts at Westpac, who say it's vulnerable to fresh declines even as the Antipodean currency continues its attempt at breaking above a key resistance level currently held by its U.S. countrerpart.
The Australian Dollar continued to march onward and upward Tuesday even after first-quarter GDP data underwhelmed the market, as investors continue to take advantage of the fact that the Aussie has already suffered enough in recent months for its shortcomings.
The Australian Dollar was on the offensive Tuesday after the Reserve Bank of Australia (RBA) cut its interest rate for the first time in two years but neglected to validate market bets that it will slash borrowing costs again before the year is out.