Macroeconomic indicators released in China today were very good, painting a positive picture of the nation’s economy. Considering that China is the biggest trading partner of Australia, it was reasonable to expect the Australian dollar to rally on the news. But that did not happen.
The National Bureau of Statistics of China released a very positive report about the Chinese economy. It showed that gross domestic product expanded 6.0% in the second quarter of 2017 from the similar period of 2016, the same as in the first quarter and above the average forecast of 6.8%. Industrial production grew 7.6% in June from a year ago, while analysts had forecast the same 6.5% rate of growth as in May. Other important indicators were also either within or above expectations.
Yet the Australian currency did not respond to the good news. Analysts named the strength of the US dollar during the Monday’s trading session as one of the possible reasons for that. Another one was the neutral stance of the Reserve Bank of Australia in the time when major central banks are becoming more hawkish.
AUD/USD traded near its opening level of 0.7825 as of 11:06 GMT today. EUR/AUD was also near the opening of 1.4655. AUD/JPY traded basically at its opening level of 88.01 as well.
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