AUD/USD hovers below 0.70, eyes quarterly loss

• AUD/USD is struggling to build momentum above 0.70
• Australia's private sector credit growth matched estimates.
• AUD/USD on track to report quarterly losses.

AUD/USD closed above the psychological hurdle of 0.70 on Thursday. So far, however, the currency pair has failed to capitalize on the bullish breakout. 

As of writing, the AUD/USD pair is trading at 0.6990, having hit a high of 0.7009 earlier today. 

Australia's private sector credit rose 3.6% year-on-year in May, having increased by 3.7% in the preceding month, the data released at 01:30 GMT showed. Month-on-month, the metric rose 0.2%, missing the estimated growth of 0.3%.

The AUD has shed 10 pips following the release of the weaker-than-expected. It is worth noting that the AUD/USD pair has added more than 150 pips in the last ten days. The surge could be associated with the dovish Federal Reserve expectations and the hope that the US and China would reach some kind of a trade truce at this week;s G-20 meeting.

However, despite the recent surge, the currency pair is still down 1.34% from this quarter's opening price of 0.7206.

The quarterly loss could increase by today's NY close if the US personal income, personal spending, and the core personal consumption expenditure (PCE) - the Fed's preferred gauge of inflation - beat estimates, pushing Treasury yields and the US dollar higher. The key data are scheduled for release at 12:30 GMT today.

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