Latest economist poll done by Reuters suggest that Australia may record the weakest growth rate this quarter against all expectations and forecasts.
Slow vaccination rate, continuing lockdowns, and sluggish market sentiments are negatively impacting Australia’s economic recovery. The forecast is now at only 0.1% against the forecast of 0.9% predicted in a similar poll done in April.
The release of Aussie Retail Sales data that showed a drop of -1.8% in June caused the AUDUSD pair to drop back to the 0.7300 level. Reserve Bank of Australia (RBA) policymakers’ decision to reject any rate hike before 2024 also played its part in making the bears stronger.
Australia’s and UK’s COVID figures and concerns over the US stimulus plan forced the S&P500 futures to go down by 0.05%.
On the other hand, the EURUSD didn’t perform well either and posted lower lows, continuing the bearish trend. All eyes are on the European Central Bank’s (ECB) monetary policy decision that is poised to be out on Thursday. If it is favourable, then the bulls can brush off the bearish stance and take the index beyond the 1.1840 mark. However, given the current trend and conditions, this is highly unlikely. The currency pair may continue to seesaw around 1.1780.