The Australian Dollar is facing a correction. Overview for 21.08.2018
On Wednesday morning, AUDUSD is trading downwards after seven days of continuous growth.
The Australian Dollar is being corrected against the USD in the middle of the week. This is the first time the Aussie is falling after seven consecutive trading sessions of rising. The current quote for the instrument is 0.7341.
It became known today that the Westpac Leading Index remained the same in July after adding 0.1% m/m in the previous month. According to Westpac estimations, right now the indicator is below the trend. Apart from this, major indicators are slowing down a bit, and it can be clearly seen if one compares them with the numbers of the beginning of the year.
In addition to this, Westpac said that the leading indicators in Australia might remain weak under the trend line until the end of 2018. It means that the future economic outlook for consumers will remain uncertain, although right now everything is looking quite stable.
Among the risks for the economic growth in general and the leading indicators in particular are prices decline in the real estate market, slowdown of activity in new jobs, and rather high debts of households.
Another reason why the Aussie is falling lies in the fact that the USD is reaching stability: earlier, the American currency had been falling for a while, but right now, it is trying to consolidate.
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