AUD/USD is showing little movement in the Tuesday session. In North American trade, AUD/USD is trading at 0.6955, down 0.07% on the day. On the release front, Australian NAB Business Confidence jumped to 7, after two straight readings at zero. It was the indicator’s strongest showing in 10 months. Later in the day, Australia releases Westpac Consumer Sentiment. In the U.S., producer price index reports matched their estimates. PPI dipped 0.1%, down from 0.2% a month earlier. Core PPI edged up 0.2%, up from 0.1% in the previous release. Wednesday will be a busy day. The U.S. releases consumer inflation and Australia releases MI inflation expectations and employment change.
The Australian business sector appears in a buoyant move, according to the latest NAB business confidence survey. The indicator climbed to 7 in May. The business sector was pleased with the unexpected victory of the conservative coalition in the general election last month, as the conservatives are considered more pro-business. Will the Westpac consumer confidence survey follow suit? If so, the Aussie could gain ground.
There were fears that President Trump would slap Mexico with new tariffs, opening up another trade war front. The tariffs were set to take effect on Monday, but the U.S. suspended the tariffs, after high level talks helped defuse the latest crisis. As well, G-20 finance ministers agreed on a joint communique to reduce trade tensions. With President Trump and President Xi of China meeting at the G-20 summit in Japan in late June, we could see progress in the bitter trade dispute between the world’s two largest economies.