The Aussie is losing its position in anticipation of the Fed meeting.
The Nab business confidence index showed a decrease from 5 to 3 in May. Westpac consumer sentiment index has fallen from 8.5% to -1.0%. The commodity markets began to show a steady decline.
The Australian market is waiting for the British referendum and today's Fed meeting. Today, the Aussie was able to recover 70% of yesterday's fall in yields on government bonds.
Today the long-awaited Fed’s meeting will be held. It has caused us a lot of guesswork and emotion. We know that the labor market didn’t please in May, the consumer confidence declined, but the retail sales have grown.
The recent comments by Janet Yellen convinced the investors that FOMC is not ready for aggressive action, but the question remains - when will we see the next rate hike? To date, investors believe that, most likely, it will happen in December.
Tomorrow the moderately positive data on employment is expected in Australia. The employment change may increase by 15.0K, the unemployment rate forecast remains at 5.7%. These data may slow the decline of "Aussie".
How to trade
The downward movement is possible in the range of 0.7360 - 0.7304. We would buy call options if the Aussie rises above 0.74. We would buy put options if the pair falls below 0.7360.
Expiry time: 20:00 GMT