The AUD/USD pair is trading to the downside after China published several macroeconomic reports.
On Tuesday morning, the Australian Dollar is falling against the USD. The current quote for the instrument is 0.7551.
As usual, the Aussie is very sensitive to the Chinese reports, especially when they are mixed and give causes for reflection. This morning, China published statistics on the Retail Sales, which added only 9.5% y/y in January after expanding by 10.9% y/y the month before and against expectations of 10.5% y/y. it appears that even on the Lunar New Year’s eve, Chinese consumers didn’t buy more than usual, and that’s strange, at least.
The Industrial Production in China in January increased by 6.3% y/y after adding 6.0% y/y in the previous month. This is a good signal, but probably the result of the increased output before long new year holidays. The components of the report show that the demand for the Export goods in the sector increased, but that’s quite predictable.
One should note that the better the Industrial Production numbers, the higher the risks of the high inflation pressure. If it becomes a tendency, the Chinese Central Bank will have to tighten its monetary policy.
Even with all things considered, flows of funds in China are impressive. In January, the Fixed Asset Investment increased up to 8.9% y/y after being 8.1% y/y in December and against expectations of 8.2% y./y. It is well-known that the stronger the capital flows are, the more perspective the economic situation is, because investors don’t seem to be afraid of possible complications.
However, the Aussie is still moving downwards, because positive reports from China look occasional and don’t seem as a stable trend.
RoboForex Analytical Department