Currency News: Australian Dollar Maintaining Its Low
Currency News
The Australian Dollar is currently trading at a low 0.74 relative to the USD. It is also trading at 0.66 relative to the Euro.
The main implications for the Australian Dollar (AUD) is the April Retail Sales. Australia will release the report on June 1st. With Consumer Confidence low, data alludes to a downside for retail sales. However, the market is still expecting a rise of 0.3% from the -0.1% previously.
Other factors affecting the AUD include Chinese data such as the Chinese Caixin Manufacturing (PMI) Index. The data is to be released on the May 31, 2017, synonymous with PMI’s released elsewhere. With the key level for that index at 50, it is expected for the PMI to decline to 50.1, just above the threshold of contraction rather than growth. With Australia as an imperative trading partner, bad news for China could correlate negatively for the AUD. Consequently, data out of China is only relative to the performance of the AUD.
Potentially the most important factor affecting the AUD is commodity prices. With the global economy improving, commodity prices have increased, causing an increase in Australian income. Although with interest rates at an all time low of 1.5%, foreign investment is at an all time high.
