AUD Reacts to Some Economic Events: Daily Market Commentary, July 16, 2018
The AUD is strengthening against the greenback on Monday, picking some regular news from China. The pair is currently trading at $0.7429. A large bundle of data came today's morning from China.
In Q2, the Chinese GDP rose by 6.70%, meeting the expectations, against the expansion by 6.80% in Q2. China is facing the trade war risks coming from the US, although the government is making every effort to keep the economic conditions sustainable. People's Bank of China, however, will have to ease its monetary policy in order to support the economy.
Manufacturing production in June came at just 6.00% YoY, against the forecast at 6.50% and the May value at 6.80%, so the current value did not impress the market at all. The unemployment in June did not change compared to the previous data, staying at 4.80%. The retail sales, conversely, came positive, with 9.00% YoY this month against the expectations at 8.80% and the previous value at 8.50%.
These indicators are particularly interesting ahead of the US and China meeting, where China is expected to bring up a point on expanding its influence in WTO.
Australia needs Chinese economy stable, as China is its key trading partner.
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