The Australian Dollar is under pressure again. Overview for 10.03.2021

After a short pause, AUDUSD is back to falling. 

The Australian Dollar is once again falling against the USD. The current quote for the instrument is 0.7676.

The statistics published in the morning showed that the Westpac Consumer Sentiment was 2.6 points in March after being 1.9 points in the previous month. It’s a good signal – a slow recovery of the country’s economy in general and the labor market, in particular, allows consumers to feel more comfortable. 

Yesterday, the Aussie recovered a little bit due to a local decline of the “greenback” of global financial markets, but on Wednesday morning everything went back to the way it was before.

Today’s statistics from China turned out to be rather mixed. For example, the Consumer Price Index improved a little bit in February and showed -0.2% y/y against both previous and expected readings of  0.3% y/y. however, China should be afraid of deflation right now as it may help the country’s economy to faster recover after the coronavirus crisis. Prices are looking stable and not raising any concerns. The food inflation in China dropped in February due to a slump in prices for pork amid the African swine fever virus. 

The Producer Price Index in China expanded by 1.7% y/y in February after adding 0.3% y/y the month before and against the expected reading of 1.3% y/y. The improvement is directly connected to the smelting of black and non-ferrous metals, which are in demand on the domestic market again. The price surge for metals on commodity markets boosted these dynamics. 

The Chinese statistics are very important for the Aussie – China has always been and remains Australia’s key trade and economic partner.