The Australian Dollar is falling. Overview for 23.03.2017

On Thursday, the AUD/USD pair is trading to the downside despite the support from the Chinese Premier’s tour around Australia.

The Australian Dollar has been falling against the USD for three trading sessions in a row. The current quote for the instrument is 0.7634.

There was no significant statistics for the Aussie today. Li Keqiang, the Chinese Premier of the State Council, continues his five-day trip around Australia. He is talking about intentions to build up closer and steadier relationship between two countries to increase mutually beneficial trade turnover in the future. According to his words, China would like to import more goods and products manufactured by Australia.

Moreover, China has plans to explore the possibility of free navigation. All these things taken together are good for both China and Australia, but the Aussie hasn’t responded to these comments yet.

Instead, the Aussie is carefully watching all news relating to the Fitch agency’s observations over amounts and values of the leverage in the Chinese economy. Particularly, several large companies that may go bankrupt give causes for concern. At the same time, the People's Bank of China has enough free liquidity to exclude the domino effect when it comes to bankruptcy, this is why such risks exist, but are evaluated as acceptable.

Earlier, the Australian Dollar moved to the area of November 2016 highs, this is why the current decline may be considered as a technical correction.

RoboForex Analytical Department