Australian Dollar Gains Momentum as Chinese Data Boosts
The Australian dollar is showing signs of a tentative rebound this morning following a period of stagnation. Chinese economic data, as indicated in the economic calendar below, has provided a boost to the "pro-growth" currency, with better-than-expected figures in industrial production and retail sales. This comes as a welcome relief for Chinese authorities, given recent data had suggested sluggish economic growth, which had a weakening effect on currencies closely tied to the AUD.
While the US dollar is marginally down in today's trading, the robust US data from yesterday should reinforce the message of "sustained higher levels." Today's releases of industrial production and Michigan consumer sentiment are expected to soften, which may enable the AUD to maintain its recent gains heading into the following week. Next week, there are some critical risk events to monitor, including RBA meeting minutes, the US building permits report, the Fed's interest rate decision, and Australian PMI data.
While the US dollar is marginally down in today's trading, the robust US data from yesterday should reinforce the message of "sustained higher levels." Today's releases of industrial production and Michigan consumer sentiment are expected to soften, which may enable the AUD to maintain its recent gains heading into the following week. Next week, there are some critical risk events to monitor, including RBA meeting minutes, the US building permits report, the Fed's interest rate decision, and Australian PMI data.
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