The Australian Dollar is heading downwards. Overview for 24.07.2020

AUDUSD has been falling for the second trading session in a row despite stable statistics. 

The Australian Dollar is retreating against the USD. The current quote for the instrument is 0.7079.

The statistics published in the morning showed that the Manufacturing PMI improved up to 53.4 points in July after being 51.2 points the month before. The Services PMI moved from 53.1 points in June to 58.5 points this month. 

The Aussie didn’t respond to these numbers. It seems like all eyes are currently on the escalation of the US-Chinese conflict. 

Political dialogue between the countries deteriorated after the Ministry of Foreign Affairs of the People's Republic of China announced the closure of the American consular post in Chengdu. Earlier, the USA did the same in Texas – the response was not long in coming.

Earlier this week, United States Secretary of State Mike Pompeo called the relationship between Washington and Beijing adversarial. The USA believes that Chinese actions are a menace to the free world and should act preventively – this is how they see the situation in the White House. 

For Australia, possible problems of the Chinese foreign policy are risky, because Beijing was and is Australia’s key trade and economic partner.