The Australian Dollar once again is back under the 74c handle against the Greenback relinquishing all gains from the session prior. The AUD/USD suffered at the hands of a stronger U.S Dollar falling from 0.7463 down to 0.7372. The move was sparked by a sharp drop in copper prices and markets squaring up positions ahead of top-tier US data out later today US time.
Speaking of which, locally yesterday Australian Import Prices increased at a faster-than-expected pace in the three months ended June, figures from the Australian Bureau of Statistics revealed. The import price index climbed 3.2 percent sequentially in the second quarter, faster than the 2.0 percent rise in the first quarter. It was the third consecutive quarterly increase and above the 1.9 percent rise, economists had forecast. The increase was driven by higher prices paid for petroleum, petroleum products and related materials, general industrial machinery, electrical machinery, apparatus, and appliances. On a yearly basis, imports prices grew at a faster rate of 6.0 percent in the June quarter, after a 2.6 percent gain in the March quarter. Data also revealed that export prices grew 1.9 percent quarterly and by 6.6 percent yearly in the June quarter.
The domestic docket sees PPI figures due at 11.30am AEST, figures are expected to remain flat at 0.5%. Markets will be closely watching tonight’s US Q2 GDP figures with consensus for growth of 4.2%.