The Australian Dollar reached stability. Overview for 03.07.2019

On Wednesday, AUDUSD narrowed its range; it is ready for new catalysts. 

The Australian Dollar is consolidating against the USD on Wednesday morning. The current quote for the instrument is 0.6993. 

The fact that the USA and China finally reached some kinds of balance in their trade talks was very positive for capital markets and their attitude to risks, so the Aussie also got a reason to reach stability. Everything that is related to China is very important for Australia, because China has always been and remains its major trade and economic partner. 

In the morning, Australia reported on the Building Approvals for May, which recovered by 0.7% m/m after losing 3.4% m/m in April. As long as the sector is unstable, it remains one of the key problems of the Australian economy. By the way, this problem was mentioned by the Reserve Bank of Australia yesterday after its meeting, where the regulator cut the benchmark rate to the record-low value.  

China is also reporting on its macroeconomic indicators and they are rather disturbing. The Caixin Services PMI decreased from 52.7 points in May to 52.0 points in June. The indicator was really expected to drop, but not so much. Much of the latest data from China shows slowdown in the country’s businesses and economy, which, of course, is not good at all.