The Australian Dollar is falling a bit. Overview for 21.01.2019
AUDUSD got under pressure due to the numbers from China, but sellers are still very cautious.
The Australian Dollar is falling against the USD on Monday afternoon. The current quote for the instrument is 0.7167.
In the morning, Australia reported on the HIA New Home Sales, which plummeted by 6.7% m/m in December after adding 3.6% m/m in the previous month. Despite this weak reading, the Aussie didn’t pay much attention to it, because investors were interested in number coming from China.
The Chinese GDP was only 6.4% y/y in December, which is the same as expected, but worse than it was the month before, 6.5% y/y. In general, the Chinese economy expansion in the fourth quarter 2018 was the weakest over the last 28 years. In 2018, the indicator added 6.6% against 6.8% in 2017. The growth rate is slowing down indeed and although this decline is expected, it is still can be said that “reality bites”.
The major impact on the Chinese economy in 2018 was made by “trade wars” with the USA. Apart from this, the country experienced some difficulties with internal consumption and reduction of investments.
Numbers from China are always important for Australia, because China is its key trade and economic partner.
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