Aussie Again under PressureThe AUD is going down again after taking a short break. The RBA meeting minutes did not affect the currency very much, as everything was quite clear beforehand. The Chinese stats were, on the contrary, very influential.
The Chinese government did release multiple important economic indicators on Tuesday. The manufacturing production grew by7% YoY, which exceeded both the expectations and the March data. This figure was actually going down since 2012, so it looks like it is steadily recovering first in 6 years, which is very positive.
This was the only piece of good news for today, though. The major asset investments also grew by 7% YoY, but this is lackluster compared to the previous period. This indicator is very important for the real sector, as it shows the number of funds spent by various businesses, from agriculture and production all the way to finance and administration.
Meanwhile, April retail sales grew by 9.4% YoY, a bit short of the expectations at 10% and the March growth of 10.1%. It is curious that the indicator performed well in the rural sector, but was weak in the cities.
Chinese news has a strong influence on the AUD, as the Celestial Kingdom is still a key partner for Australia. The Chinese economy beat the average expectations in Q1 2018, but the momentum may well fade out by the end of the year, with the growth returning to the official target at 6.5%.
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The AUD selloff this morning did fade out somewhat in the middle of the trading session, but then we have the USD strengthening, and this can affect the Aussie more than some local reactions. AUD/USD was trading at 0.7456, down 0.96% at the time of writing.
Technically, the AUD/USD shows the pair is still under pressure inside a midterm descending channel. 0.7453 may act as a local target for the sellers, with a potential to push the price to the recent low at 0.7407. The intermediate support is at 0.7491, while the resistance is at 0.7568
This article was written by Dmitriy Gurkovskiy, a Chief Analyst at RoboForex