AUD on the rise as market picks up risk appetite, investors eyeing on US inflation data and ECB meeting

AUDUSD had a sharp rise last Friday and is still on the upward track. There are two major reasons behind this move. On the one hand, Australia started the week with strong economic data. Services PMI was up from 61 to 61.2 in May, and ANZ job advertisements data also jumped to 7.9%, reaching its five-month high. On the other hand, investors are speculating that job data from the US are not strong enough to push the Fed to change its monetary policy. Last Friday non-farm payrolls missed the forecast, which has pressured the Treasury yields and USD. AUD has long been seen as a proxy for risk appetite, and these reasons combined have provided strong support for the currency.

On Wall Street, the stock market has moved mostly lower. The market is now waiting for US inflation data and ECB meeting on Thursday. Economists are expecting the May inflation reading to show a 4.7% increase on a YoY basis.