Australia private sector credit dropped -0.2% mom in June, wore than expectation of 0.2% mom. Housing credits rose 0.2% mom. But personal credits dropped -0.6% mom while business credits dropped even more by -0.8% mom. PPI dropped -1.2% qoq in Q2, much worse than expectation of 0.3% qoq. Annually, PPI turned negative to -0.4% yoy versus expectation of 1.3% yoy.
Australian Dollar is mixed in Asian session. AUD/NZD dropped notably after hitting 1.0800 yesterday, but it’s quickly recovering. At this point, rise from 1.0565 is still in favor to extend higher as long as 1.0669 support holds. Break of 1.0800 will target 1.0880 high next. However, based on current momentum, we’re not expecting a break there on first attempt. Meanwhile, break of 1.0669 will extend the pattern from 1.0880 with another fall back towards 1.0565 support.
