The Australian Dollar failed to continue growing. Overview for 14.11.2018

AUDUSD is falling on Wednesday afternoon; the statistics from China were rather mixed.

The Australian Dollar is falling against the USD in the middle of the week. The current quote for the instrument is 0.7196.

The Industrial Production in China increased up to 5.9% y/y in October, which is better than both expected and previous numbers (5.8% y/y). However, it’s not the time yet to talk about any breakthrough. The manufacturing sector is supported by exporters’ demand, who are in a hurry to dispatch as many goods as possible to the USA before import duties go higher. Considering that the White House is currently provoking China to some hostile rhetoric and actions, such strategy and approach are pretty justified. One should understand that the Export may decline and force drawdown in the Industrial Production as well. 

On the other hand, the Retail Sales in China dropped from 9.2% y/y in September to 8.6% y/y in October. Slowdown in this indicator usually shows the same in consumption. It’s not a good signal for the Chinese economy. Decline in domestic consumption occurs due to household debt increase, which may also have negative consequences. 

The Fixed Asset Investment added 5.7% ytd/y against the expected reading of +5.5% ytd/y. The Foreign Direct Investment report will be published later. 

The Unemployment Rate in China didn’t change and remained at 4.9%. 

Strong numbers from China are usually good for the Australian Dollar, but mixed ones mostly result in slow decline.