On Thursday afternoon, the AUD/USD pair is falling after several trading sessions of growth.
The Australian Dollar is retreating a little bit on Thursday. The current quote for the AUD/USD pair is 0.7444. The instrument was getting more expensive this week, so now it’s time to stabilize.
This morning, china published some interesting statistics. Australia’s attention to the Chinese indicators is obvious as China was and is the key trade and economic partner of the country. So, the inflation in China in May increased less than it was expected, by 2.0% y/y against 2.3% y/y. On a month-on-month basis, the CPI reduced by 0.5%, and it is worse that the number in April. At the same time, the PPI improved up to -2.8% y/y against the expected decrease to -3.3%.
The inflation decline was triggered by fall in fruit and vegetable products prices, but at the same time, the price of meat increased.
Decline in the inflation indicates mixed processes in the Chinese economy and is usually quite negative for the Yuan exchange rate. In this case, the Yuan cost is controlled by the Central Bank, that’s why we won’t probably see any fluctuations here. Anyway, the statistics shows that the Chinese economy really needs the motivation from the Central Bank, because of the pessimistic processes in the CPI.
For Australia, these complications with the Chinese statistics are moderately negative.
RoboForex Analytical Department
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