AUD Slips Ahead of Royal Wedding Doldrums

The Australian dollar is a minor laggard in Asia-Pac trading after failing at 1.0940 for the second consecutive day. Japan is closed for holiday and the Royal Wedding will slow trading with the UK closed as well. Later European economic data could prompt some excitement.

AUD/USD struggled to overcome yesterdays high of 1.0947 in early trading and fell 50 pips as traders take profit ahead of the weekend. Australian private sector credit was a bit better than expected but not enough to move the market. AUD/USD is consolidating between 1.0880 and 1.0940 and will likely stay there at least until Europe comes online.

New Zealand trade figures showed a surplus of $464m compared to the $204m expected. The data sparked a 25 pip rally but the gains were quickly wiped out.

Korean industrial production rose 8.7% in March y/y. Its obviously a healthy rise but was well short of the 12.0% consensus. This may be an early sign that the disaster in Japan has caused backlogs and slowdowns elsewhere.

Some are saying the Royal Wedding could draw the largest television audience in history so trading may come to a standstill as the future king of England takes his wife. Otherwise, data on German retail sales, Italian consumer prices, Italian employment and Spanish retail sales may take precedence.

By AB - AshrafLaidi.com Staff