The Australian dollar, paired with the US dollar, has been slipping down consistently on Wednesday. The current AUDUSD quote is 0.6684.
The previous trading session proved to be quite volatile for the Australian dollar due to the Reserve Bank of Australia's decision to keep the interest rate unchanged at 4.10% per annum. However, by the end of the day, AUD managed to recover ground and close with a positive outcome.
Today the positive sentiment is affected by data coming from China. The Caixin Services PMI for June fell to 53.9 points from 57.1 points previously. The forecast did not exclude a decline to 56.2 points. This reading marks the lowest value in five months. Chinese consumers are cutting back on their spending due to gloomy income prospects and an uncertain job market. These signals from China have a negative impact on Australia, which considers China to be its primary trading and economic partner.
In addition, the strengthening of the US dollar this morning is exerting pressure on AUD positions.