Aussie Falls Despite Positive Market Sentiment, Domestic Data Doesn’t Help

The Australian dollar remained soft today, extending yesterday’s decline against many rivals. The Australian currency, together with its New Zealand counterpart, was moving in opposition to the general market sentiment, which was positive and supportive to riskier currencies. Mixed domestic macroeconomic data was not helping the Aussie.
National Australia Bank reported that business conditions fell from +3 to +1 in May. In contrast, business confidence rose sharply from 0 to +7. Yet the report warned that the index “is unlikely to persist at these levels given the weakness in other forward-looking indicators”.
AUD/USD traded at 0.6956 as of 8:04 GMT today after opening at 0.6959 and touching the daily low of 0.6946. EUR/AUD advanced from 1.6250 to 1.6270, and its daily high of 1.6287 was the highest since April 1.

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