Earlier today, official data showed that Australian company gross operating profits declined by 1.9% in the second quarter, which pushed the Australian dollar lower against its U.S. counterpart. As a result, AUD/USD reversed once again and approached the Friday’s low. Where will the exchange rate head next?

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Although the University of Michigan showed that its index of consumer sentiment slipped to 91.9 this month from 92.9 in July, positive data from the U.S. Bureau of Economic Analysis (which showed that the goods trade deficit narrowed to $59.12 billion in the previous month) in combination with rising U.S. personal spending and U.S. personal income supported the greenback. Thanks to these circumstances, the USD Index climbed above the level of 96. What impact did this increase have on our six currency pairs?

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Earlier today, the Australian Bureau of Statistics reported that private capital expenditure declined by 4.0% in the second quarter, missing analysts’ expectations for a 2.5% drop. As a result, AUD/USD moved lower once again but did this move change anything in the short-term picture?

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Earlier today, the U.S. Commerce Department showed that durable goods orders increased by 2.0% in the previous month, beating expectations for a decline of 0.4%. Additionally, core durable goods orders (without volatile transportation items) rose by 0.6% also higher than forecasts. Thanks to these solid numbers, the USD Index erased Monday’s declines and approached the level of 95, pushing the euro to its short-term support line. Will it hold in the coming days?

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The USD Index reversed and rebounded after the People’s Bank of China cut interest rates by 25 basis points to 4.6%. As a result the index erased over 75% of yesterday’s decline, pushing the euro under the May high. Will we see further deterioration in EUR/USD in the coming days?

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