On Friday afternoon, the AUD/USD pair is trading lower against the strengthening of the US dollar and news from China.
During the Asian session on Friday, the Australian dollar rose slightly in tandem with the USD, but with the return of European investors' the appetite for risk has markedly declined. Sympathy of the traders has returned to the US currency. The head of the Federal Reserve Janet Yellen did not rule out that the interest rate can be revised to increase this year. After the neutral results of the September meeting the market returns to the subject of interest rates. Much will depend on the state of the labour market this autumn, and - most importantly - inflation indicators. It is possible that the cost of credit will be reviewed in November.
The morning Chinese news has affected the Australian dollar quotes. Bloomberg today wrote that at the end of August this year, the outflow of capital from the Chinese economy was a record $ 141.6 billion while in June 2015 more than $ 120 billion has flowed out of the system. The August panic was, most likely, due to the devaluation of the Yuan. Now the situation is with the value of the Yuan is stable, but that does not mean that the local currency is not in danger. China's economy continues to decline, and this is probably the most significant risk factor.
News from China is very important for the Australian dollar. China has been and remains a key trading partner of Australia. Any fact indicating a reduction in the rate of economic growth will be immediately reflected in Australia’s export and production figures.
RoboForex Analytical Department
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