Investors await US inflation data

THE Australian dollar is lower against its US counterpart despite the greenback’s slight easing.

THE Australian dollar is lower against its US counterpart despite the greenback’s slight easing. At 0635 AEST on Tuesday, the Australian dollar was worth 79.12 US cents, down from 79.24 US cents on Monday.

The US dollar index, which tracks the greenback against six major rival currencies, has fallen 0.1 per cent, but the currency has kept most of its Friday gains from a stronger-than-expected US jobs report.

Investors await this week’s US inflation data that may signal a turnaround in the currency’s weakness this year.

FX Techs’ Niall O’Connor said he expected the Aussie to consolidate from here. “For AUD/USD, additional consolidation is likely in line with the current overbought set up as support in the .7875 area stays important,” he said in a Tuesday morning note.

“Some additional near-term pause can develop as the short-term overbought set up continues to unwind. Still, the upside risks are intact following the break from the medium-term range.

The .7875/.7780 pivot levels will continue to act as key initial support.” The Aussie dollar is also lower against the yen and the euro.

CURRENCY SNAPSHOT AT 0635 AEST ON TUESDAY

One Australian dollar buys:

* 79.12 US cents, from 79.24 on Monday

* 87.64 Japanese yen, from 87.77 yen

* 67.08 euro cents, from 67.25 euro cents

Originally published as Investors await US inflation data