The AUD/USD pair is trading to the downside on Thursday; the market is responding to the Chinese statistics.
On Thursday morning, the Australian Dollar is still falling against the USD. The current quote for the instrument is 0.7398.
The Retail Sales in Australia expanded by 1.0% m/m in April after losing 0.2% m/m in March and against the expected reading of 0.3% m/m. The report may be considered as some kind of a correction of the previous numbers, that’s why it didn’t attract much attention from investors. However, they focused on another one.
The AIG Manufacturing Index decreased up to 54.8 points after being 59.2 points the month before. The indicator has been above 50 points for eight consecutive months, but has been growing much slower.
But the most impressive reason to sell the Aussie came from China. This morning, the country reported on the Markit/Caixin Manufacturing PMI fell below 50 points and is now 49.6 points. This is the first significant decline over the last 11 months. The indicator turned out to be much worse that the market expected and resulted in sales of the Aussie.
The Australian Dollar remains too sensitive to any news from China due to close economic relations between these countries.
RoboForex Analytical Department