Market news
30.07.2024, 14:09

AUD: Made in China – Commerzbank

Since July 12, the Australian Dollar (AUD) has lost almost 3.5% against the US Dollar (USD), making it one of the weaker G-10 currencies over that period. Two things have probably contributed to this. Both are related and both have a direct impact on Australia. But their origins lie elsewhere, Commerzbank’s FX analyst Volkmar Baur notes.

AUD is facing headwinds from China

“In fact, the only significant new information on the Australian economy over the past two weeks has been the labor market data – and that should have supported the Aussie dollar. After all, the Australian economy is still creating significantly more jobs per month than before the pandemic, so the labor market remains tight and wage growth should remain high.”

“On the other hand, the AUD is facing headwinds from China. Weak economic data, plus a relatively disappointing Third Plenum and so far no further stimulus announcements after the expected July Politburo meeting. The Chinese economy is now expected to be weaker than it was a few weeks ago, and the impact is being felt in the industrial metals market in particular.”

“This may be the deciding factor for the AUD in the coming days. Not only will Australian inflation data be released early on Wednesday, which will likely be crucial for the Reserve Bank of Australia's next move. But also new purchasing manager indices from China. Inflation is likely to support the Aussie again. On the other hand, the PMI's from China are due. A sideways movement or a renewed weakening could overshadow the impact of Australian inflation.”

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location