Australian Dollar Holds Steady After China Data and Israel Tension Eases
The Australian dollar stayed steady after China, Australia’s biggest trading partner, released new economic numbers. In May, retail sales in China grew by 6.4% compared to last year, which was better than expected. However, factory production was a little weaker than forecasts, growing by 5.8% instead of 5.9%.
The stronger retail sales show that people in China are spending more money, which is good for Australia’s exports like iron ore and coal. This helped the Australian dollar stop falling. But the slower factory growth shows that China’s economy still has some weak spots, so traders remain cautious.
At the same time, hopes for a possible peace deal between Israel and Hamas have reduced fears in global markets, which also helped the Aussie dollar recover a bit.
Right now, the AUD/USD exchange rate is still below the recent high of 0.6500. It has support around 0.6470–0.6480. If it moves above 0.6495, it might climb higher towards 0.6538.
Impact: The Australian dollar could stay stable or rise a little if China’s spending keeps growing and global tensions stay low, but it might drop again if China’s economy slows more or if new conflicts start.