- The Australian dollar is trading lower for the second day in a row; concerns around Chinese inflation data and US employment statistics are weighing on the "Aussie".
- The US nonfarm payroll data from Friday revealed 80k private sector jobs were added in June, which was under the 100k forecast average from a Dow Jones Newswire poll.
- China’s Premier Wen Jiabao has advised the Chinese economy is running at a generally stable pace, but there is still nonetheless "huge pressure to go downwards". Australia is heavily reliant on trade with its Chinese neighbour.
- AUDUSD price is currently consolidating around the 23.6% Fibonacci retrace from the last wave higher. The recent trend has been to the upside as price made a series of higher lows. Price had difficulty moving above the 100 day SMA.
- Events in China may help determine the next directional push for the Aussie and whether we are seeing a correction in the uptrend, or initiation of a bearish trend.
- Further economic data is due from China later this week, and the Australian dollar is vulnerable to any negative output on this front.
