During Monday Asian trade, Australian dollar retreated against the US counterpart, as investors were with bearish sentiment towards the Aussie. The pair dropped to 0.9630. Support levels were expected at 0.9592, lowest value from Friday last week, while the pair was likely to meet resistance at 0.9750, highest for Friday session.
US Commodity Futures Trading Commission announced data, which strengthened speculations that Aussie might lose more ground versus the US dollar, as short bets on the Australian dollar rose to 32 409 contracts on May 21st, an increase from 13 450 contracts during the preceding week.
The Conference Board’s index of US consumer sentiment probably rose to 71 during May from 68.1 in April, according to the median estimate of experts before the private research group releases the data on Tuesday. Todays holiday closed US markets.
Heavy pressure was put on the Aussie on Thursday last week after manufacturing sector in China shrank in May for the first time in seven months. HSBC Flash Purchasing Managers Index in China fell to 49.6 in May, as previous month reading showed 50.4. Net income of Chinese industrial companies rose by 9.3% during April in annual terms to 437 billion yuan (71 billion US dollars), and up from a 5.3% increase during March, according to official data. China remains the largest export partner of Australia.
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