Article By RoboForex.com
The AUD/USD pair is getting more expensive on Tuesday after Australia and China published their statistical reports.
On Tuesday afternoon, the Australian Dollar is growing against the USD. The current quote for the instrument is 0.7677.
The statistics from Australia published this morning showed that the NAB Business Confidence in January increased up to 10 points after being 6 points in the previous month. However, the comments from the NAB say that one should treat this report very carefully, because the growth is probably influenced by the seasonal factor. One of the “thinnest” points of the indicator is a weak tendency in the household spending – it looks like there are some reasons why the consumption size and rate might be decreasing in the future.
Also, some of the market’s attention in the morning was attracted by the statistics from China. The Chinese Inflation Rate in January added 2.5% y/y although it was predicted to increase by 2.4% y/y. On MoM, the indicator expanded by 1.0%, which is much better that the December reading of 0.2%. The Producer Price Index in its turn added 6.9% y/y against expectations of 6.3% y/y.
The inflation is one of the most important macroeconomic indicators, which are used to analyze the country’s economy. China doesn’t publish a lot of statistical reports and they are usually overdue, that’s why up-to-date inflationary readings may look quite informative. On the one hand, the January growth of the inflation in the country has a seasonal explanation: normally, prices grow before the celebration of the Lunar New Year. However, the February reports on the Chinese CPI will be very interesting to see: if the inflation tends to grow quickly, one can expect the country’s Central Bank to tighten fiscal terms.
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As usual, the strong statistics from China supports the Aussie.
RoboForex Analytical Department
Article By RoboForex.com
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.