Aussie dollar trades above US$0.62

Daily Currency Update

The Australian dollar is stronger this morning when valued against the Greenback currently trading at 0.6290 at time of writing. The bullish tone for the Aussie emerges as the US dollar (USD) continues to weaken across the board, dragged by lower-than-expected economic data and growing investor concern over inflation and trade policy. While momentum is cautiously improving, the broader trend remains technically bearish, with resistance zones limiting additional upside for now. Last week on the data front the Westpac–Melbourne Institute Consumer Sentiment Index fell 6% in April, to 90.1 from 95.9 in March. The index is based on five sub-indices, two tracking assessments of family finances, two tracking expectations for the economy and one on whether now is 'a good time to buy a major household item'. The 'family finances vs a year ago' sub-index registered a sharp 8.5 percent fall to 70.2 in April. Likewise, the 'family finances, next 12 months' sub-index declined 6.2 percent to 101.6. Consumers were less confident about the prospect of further interest rate cuts. The Westpac-Melbourne Institute Mortgage Rate Expectations Index, which measures expectations for variable mortgage rates over the coming twelve months, rose 11.3 percent to 98.1. Looking ahead this week and on Tuesday the Reserve Bank of Australia (RBA) will release the Monetary Policy Meeting Minutes. A detailed record of the RBA Reserve Bank Board's most recent meeting, providing in-depth insights into the economic conditions that influenced their decision on where to set interest rates. On Thursday the Australian Bureau of Statistics will release the unemployment rate figures. The jobless rate is expected to increase from 4.1% to 4.2%.