Australian Dollar Holds Steady After Weak China Data
The Australian Dollar (AUD) stayed stable on Friday against the US Dollar (USD), even though new data from China came in weaker than expected.
China’s Retail Sales in July rose 3.7% compared to last year, but experts were expecting 4.6% growth. In June, the number was even better at 4.8%. Industrial Production also slowed, growing 5.7% compared to 5.9% expected and 6.8% in June. Since China is Australia’s biggest trading partner, weaker Chinese numbers often put pressure on the Aussie.
This time, the AUD didn’t fall much because the US Dollar is also losing strength. Many traders now believe the US Federal Reserve might cut interest rates in September, which is making the USD weaker and helping the Aussie hold its ground.
Next, traders will be watching US Retail Sales and Consumer Sentiment data. These reports will give clues about the US economy and the Fed’s next move, which could affect the AUD/USD pair.
Impact:
* If US rate cut chances rise, AUD could get stronger.
* Strong US data could push the US Dollar up and weaken AUD/USD.
