AUDUSD moved upwards thanks to the numbers from Australia and China.
On Wednesday afternoon, the Australian Dollar is getting stronger against the USD. The current quote for the instrument is 0.7108.
In the morning, Australia reported on the Retail Sales in February. The indicator added 0.8% m/m, which is much better than the January reading of +0.1% m/m and market expectations of +0.3% m/m.
On the one hand, the indicator seems to have recovered after being very weak early in the year. On the other hand, this recovery may be based on a seasonal factor. It would be better to wait for the March report and see the overall picture.
The Retail Sales report turned out to be very positive for the Australian Dollar and it recovered against the USD after retreating yesterday. .
Some more support came from China, just like at the beginning of the week. Numbers from China are very important for the Aussie, because China remains Australia’s key trade and economic partner despite all complications between them.
The Caixin Services PMI increased up to 54.4 points in March after being 51.1 point the month before. The number is pretty positive and prevents investors from being afraid of slowdown in the Chinese economy. Of course, there are many other factors and one shouldn’t rely on this indicator alone, but the fact that it reached the highest level over the previous 14 months is very promising.