Aussie seems to struggle against the greenback after the release of downbeat data from China.
Chinese Retail Sales and Industrial Production data data arrived as follows:
Chinese Surveyed Jobless Rate Apr: 5.1% (exp 5.4%; prev 5.3%). Chinese Fixed Assets Ex-Rural YTD (YoY) Apr: 19.9% (exp 30.3%; prev 25.6%) – Property Investment YTD (YoY) Apr: 21.6% (exp 20.0%; prev 25.6%).
Chinese Retail Sales (YoY) Apr: 17.7% (exp 35.2%; prev 34.2%) – Retail Sales YTD (YoY) Apr: 29.6% (exp 31.9%; prev 33.9%).
Chinese Industrial Production (YoY) Apr: 9.8% (exp 7.0%; prev 14.1%) – Industrial Production YTD (YoY) Apr: 20.3% (exp 21.1%; prev 24.5%)
Apart from the chinese data, mixed sentiment between the geopolitical tussles in the Middle East and fears of escalating Aussie-China tension, as signaled by Friday’s WoodMackenzie report and the recent news that the China’s informal ban on Aussie coal imports will stay until 2022 also impacts the Aussie to the downside.
On the other hand, The U.S. dollar was somewhat supported on Monday amid renewed worries about coronavirus restrictions in Asia.
Fed minutes, from an April meeting that predated the data surprise on inflation last week, are due on Wednesday and are the next market focus for getting clues on the central bank’s thinking.
“We expect the minutes … to reiterate that policymakers consider the pick up in inflation to be transitory,” said Kim Mundy, a currency strategist at the Commonwealth Bank of Australia in Sydney.
Elsewhere, As per a lastest news, Prime Minister Scott Morrison said on Monday that Australia will spend up to A$2.3 billion ($1.79 billion) over the next 10 years to keep its two remaining oil refineries open to protect the country’s fuel security.
“This is a key plank of our plan to secure Australia’s recovery from the pandemic, and to prepare against any future crises,” Morrison said in a statement.
AUD/USD 4 Hour Chart:
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