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Hardy: Why USD is likely to gain more ground this week

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USD benefited from last Friday's strong US jobs report. This Monday there has been a slight blip following comments from a French official who claimed President Obama thought the strong dollar 'posed a problem'. Although this has since been denied by a US official, it's pushed up EURUSD. 

Hardy does though believe that USD will gain further ground this week and is pointing towards a US recovery.

China, meanwhile, has recorded a trade surplus of USD 54.49 billion for May. Although that appears to be good news for China, it's not when you examine the data, says Hardy. He claims a collapse in imports combined with a fall in exports doesn't bode well. 

He also says the China data is harmful for Australia. Hardy says he's looking for a break in AUDUSD to confirm the downside potential.