The Australian dollar has weakened versus the US dollar and other major counterparts after the Reserve Bank of Australia kept rates unchanged at 4.75% for the fifth straight month, damping demand for Aussie.
Moreover, the Australian currency continued its downside movement for a fourth day against the Yen as the recent surge in the currency may “exert additional restraint” on industries related to trade.
Australian monetary policy makers said that the global economy is continuing its expansion, led by very strong growth in the Asian region. The Reserve Bank of Australia noted that a stronger currency supports the economy hold down prices in a secure area during the first three month of the year; also the bank said that private investment is picking up, mainly in resources.
Australian on Wednesday at 23:30 GMT (Tuesday) will release its performance index for the services sector during the month of April, after the March reading showed contraction below 50 at 46.5. At 01:00 GMT the home sales index in March is to be released after the 0.6% rise in February.
On Wednesday, the US economy will release at 12:15 GMT the ADP employment change and expected to show 200,000 new private sector jobs in April, from a 201,000 the previous month.
The ISM Non-manufacturing composite is also due on Wednesday and will also continue to affect the market. The index is due for release at 14:00 GMT and is expected with expansion to 57.8 in April from 57.3 during March.
Written by ForexMansion.com