The AUD/USD pair is retreating on Monday, despite the passive statistics.
The Australian Dollar is weakening against the USD during Monday’s trading session. The current quote for the pair is 0.7581.
Today’s statistics showed that according to AiG the manufacturing PMI in Australian in July was 56.4 points. It’s much higher than the indicator was in June, 51.8 points. Judging by the indicator components, business conditions in the Australian manufacturing sector is improving: factory orders and sales increased, in July the number was the highest over the last 7 years. Employment in the manufacturing sector in July moved to the highs of 2014.
New building sales in Australia in June expanded by 8.2% m/m.
However, today the market is more sensitive to the data coming from China. The manufacturing PMI in China in July was 49.9 points against the predictions of 50 points. The same indicator for non-manufacturing sector in July was 53.9 points. The manufacturing PMI from Caixin-Markit in July was 50.6 points.
In relation to the latest data, we should note that the indicator increased for the first in 17 months. This is a positive signal, but the market seems not to be inclined to trust it. Hence, such reactions from currencies. The pressure on the economic growth in China continues, that’s why stimulus measures implemented by the country’s authorities must continue as well.
The Australian Dollar is usually very attentive to the Chinese statistics as China was and is Australia’s main trade and economic partner.
RoboForex Analytical Department
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