The Aussie is being weighed down again. Overview for 12.05.2020
On Tuesday afternoon, AUDUSD is retreating based on rather neutral statistics from Australia and China.
The Australian Dollar is losing momentum against the USD on Tuesday. The current quote for the instrument is 0.6475.
The statistics published today showed that the NAB Business Confidence, the indicator that doesn’t’ take into account the agricultural industry, was -46 points in April after being -65 points in March. Any reading below 0 indicates market disruption.
It’s easy to understand that business sentiments are not so great at the time when global economies are fighting the coronavirus pandemic amid quarantine restrictions. However, businesses may quickly recover as soon as the situation gets under control.
Chinese numbers showed that the CPI decreased and was only 3.3% y/y in April after being 4.3% y/y the month before and against the expected reading of 3.7% y/y. The biggest decline was in fresh fruit prices, while the biggest growth was recorder in meat.
The Chinese PPI lost 3.1% y/y in April after decreasing by 1.5% y/y in March. It’s also quite logical – if there is no demand, then it’s time to look for new markets and new consumers by decreasing prices.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
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