On Wednesday afternoon, the AUD/USD pair has finally stopped falling and it looks like it found some support. Stabilization is unlikely to be prolonged.
That's because the "Aussie" sales stopped on the background of the retreat of its American colleague around the whole currency front. The neutral external background and the almost complete absence of any significant news provoked the attack on the US dollar. Currently the AUD/USD pair is trading around 0.7207, suspending the drawdown after two days of massive sales.
Today, China has presented interesting statistics on inflation. The Consumer Price Index for November in China increased by 1.5% y/y, against the growth of 1.3% y/y in the previous month. At the same time it became known that the index of producer prices last month downgraded its performance and amounted to -5.9% y/y. China's PPI is falling for three consecutive years, and no improvements have been seen here yet.
Some stabilization of the consumer price index does not yet cross the shadow of deflation, looming over China. Everything is too difficult with the prices, to rely on a single positive fact to talk about achieving balance. There was no significant acceleration, which could destabilize the GDP, or a rapid decline - just a sluggish fall. Only one component of the increase in food prices is not particularly threatening to the CPI acceleration.
Since the beginning of the week, the Australian dollar has been trading in accordance with the statistics published by the Chinese - the relationship between the economies of the two countries is too strong.
RoboForex Analytical Department
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