The AUD/USD pair is trading upwards for the second day in a row, supported by the statistics and the weakness of the American currency.
The Australian Dollar is feeling quite well, recovering from the decline in the middle of the week, and the weakness of the US Dollar could not have come at a better time. The current quote for the AUD/USD pair is 0.7641.
According to the statistics published today, the producer price index in Australia in the first quarter 2016 increased by 1.2% y/y, which is good. However, on a quarter-on-quarter basis, the indicator reduced by 0.2% against the predicted increase by the same number.
Private loans in Australia in March have gone by 6.4% y/y, on a month-on-month basis, the indicator improved by 0.4% against the predicted number of 0.6%. The decline of the indicator is usually a negative sign for the Australian Dollar, because it is normally considered as a “medical thermometer” of business sentiment among economic authorities.
However, in this case the market has successfully noticed only positive signs on a year on-year basis and focused on the weakness of the American currency. “Playing” on the “anti-Dollar” sentiments is still at the top of the list of market entertainment.
As long as the US Dollar remains weak due to the conservative approach of the Federal Reserve, the market situation isn’t going to change. It means that the Aussie may yet continue moving upwards.
RoboForex Analytical Department
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