AUDUSD remained down at the YTD low due to a number of reasons.
The AUDUSD pair fails to find substantial impetus during Thursday’s Asian session, hovering just above its lowest level. Since November 2022, which was reached earlier this week. Spot prices are now trading between 0.6370-0.6365. And appear vulnerable to extending the ongoing well-established downturn seen over the last two months or so.
Weaker Australian Trade Balance figures, along with China’s economic difficulties, continue to weigh on the AUDUSD.
The Australian Dollar (AUDUSD) is being weighed down by poor domestic statistics. Which suggest that the trade surplus has shrunk. In July, the GDP was $8.039 billion, compared to $11.321 billion the previous month. And $10.00 billion expected. Further information indicated that Australia’s Goods/Services Exports fell by 2% month on month. While Imports increased by 3% in July, compared to a 4% drop the previous month. Meanwhile, the data fails to please bulls or offer support to the AUDUSD pair. Amid fears over China’s worsening economic prospects – Australia’s largest trade partner.
The anxieties were fanned further by August Chinese Trade Balance data. Which showed that imports and exports declined 7.3% and 8.8% year on year, respectively, indicating. That manufacturers are still under pressure. The AUDUSD pair likewise shows no reaction to Reserve Bank of Australia (RBA) Governor Philip Lowe’s comments. Reiterating the need to boost interest rates further if inflation becomes sticky. However, the RBA’s on-hold decision for the third consecutive meeting on Tuesday. As well as the lack of new hawkish signals, appear to have convinced the central bank that policy tightening is the way to go.
The USD is consolidating around a six-month high, preventing bearish traders from placing wagers.
The US Dollar (USD) is anticipated maintaining its recent surge to a six-week high, discouraging traders from putting new negative wagers on the AUDUSD pair. The near-term bias, however, continues in favor of USD bulls, owing to increased odds of another 25 basis point rate hike by the Federal Reserve (Fed) in 2023.
The positive US ISM Services PMI on Wednesday increased bets. This is still in favor ofraised US Treasury bond rates and reinforces the USD’s optimistic outlook, implying that the pair’s path of least resistance is to the negative.
