On Wednesday morning, AUDUSD is falling and testing the levels it last reached on January 3rd 2019.
The Aussie is speeding up its decline against the USD on Wednesday morning. The current quote for the instrument is 0.6930. This is the cheapest price for the Australian currency since the beginning of the year.
In the morning, Australian reported on the Westpac Consumer Sentiment in May, which added only 0.6% after increasing by 1.9% the month before. This is a leading indicator, which shows domestic economic activity. Significant decline of the indicator is a bad signal for the Aussie.
Apart from its own statistics, the Aussie was let down by a minor signal from China. The Retail Sales increased only by 7.2% y/y in April after adding 8.7% y/y in the previous month. And again, this decline may be caused by the weak supply from producers and manufacturers due to trade wars between the USA and China. The worse the trade environment for China, the worse for Australia as China remains the key trade and economic partner for Australia.
However, there was good news as well. The Unemployment Rate in China went from 5.2% in March to 5.0% in April, which means that China did a really great job to create comfortable conditions inside its economy before getting in trade wars with Washington. However, this positive report hasn’t been able to “smooth” the consequences of other bad numbers that failed the Aussie.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.