AUDUSD Struggles – US Gains vs. Surprising Chinese Growth

On Friday, the AUD/USD pair was around $0.658, close to its lowest point since early August. This was mainly because the US dollar was getting stronger due to signs of a solid American economy and expectations that Trump might win the upcoming election.

However, an unexpected increase in Chinese factory activity supported the Australian dollar, which is often used as a substitute for the yuan.

RBA Likely to Hold Rates as Inflation Remains Stubborn

In Australia, the economic data has been mixed, making it difficult to predict the Reserve Bank of Australia’s (RBA) next moves. Producer prices rose more than expected in the third quarter, while retail sales slowed significantly in September.

• Next read: GBP/USD Hits New Low as New Budget Shakes Markets

Additionally, earlier data showed that the annual trimmed-mean Consumer Price Index (CPI), the RBA’s preferred measure of inflation, only slightly decreased to 3.5% in the third quarter, staying above the target range of 2%-3%. In their meeting next week, most people believe that the RBA will keep interest rates steady at 4.35%.

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Ethan O. Miller

Ethan O. Miller is a seasoned Forex analyst. His insightful articles offer a unique perspective on currency trends, aiding both novice and experienced traders in navigating the Forex market.

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