5:20 PM (NZT) The AUD opened the week stronger as reports of a possible Europe wide bank support facility dominated sentiment. A evidence of this did not eventuate, the sentiment appropriately eroded and the US dollar was resurgent once again . Easing the way for a weaker AUD was the soft retail sales result, although yesterdays robust capital expenditure number went someway to countering that weakness. Somewhat patchy US economic data has not helped the AUD cause, and today’s lower Chinese manufacturing number added to the heavy tone. The RBA next week will be the key, the market has expectations of a RBA cut to the cash rate. Today’s low at .9646 is lower than the December lows, and now the October 2011 lows .9400 will be the target. Progress from here will likely prove harder fought for the US dollar however, with much of the easy work done in terms of the AUD downside. Whilst “bear” market rallies are often sharp, it is hard to imagine too much AUD upside ahead of the Greek elections on June 17^th.
 
The current interbank midrate is:                                                            AUDUSD  .9691                                                                                         
 
The interbank range so far this week to date has been:                 AUDUSD .9646 – .9899