Given that retail sales increased 1.2% month over month in June, as opposed to the anticipated 0.4% gain, the Australian dollar holds its position.
In July, the Non-Manufacturing PMI decreased to 50.1, while China's NBS Manufacturing Purchasing Managers' Index dropped to 49.3.
In July, the Fed maintained its benchmark interest rate between 4.25% and 4.5%.
Thursday saw an increase in the value of the Australian dollar (AUD), ending its five-day downward trend. Following the release of important economic statistics from Australia and its close trading partner, China, the AUD/USD pair holds steady.
In June, Australia's retail sales increased 1.2% month over month, up from 0.5% (revised from 0.2%) in May. The reading above the 0.4% market expectation. In the second quarter, retail sales increased 0.3% QoQ, up from 0.1% in the first quarter (raised from 0%).
In June, Australia's retail sales increased 1.2% month over month, up from 0.5% (revised from 0.2%) in May. The reading above the 0.4% market expectation. In the second quarter, retail sales increased 0.3% QoQ, up from 0.1% in the first quarter (raised from 0%).
As the US dollar ends its winning streak, the Australian dollar rises.
At the time of writing, the US Dollar Index (DXY), which compares the value of the US dollar to six major currencies, is trading at 99.80, ending its recent upward trend. However, as was largely anticipated, the Federal Reserve (Fed) held its benchmark federal funds rate between 4.25% and 4.5% during its July meeting on Wednesday, which helped the greenback gain ground.
In a post-policy conference, Fed Chair Jerome Powell stated that the US central bank has "taken no decisions" regarding a possible policy shift in September and that it could take some time to see how tariffs might affect consumer prices.
In a post-policy conference, Fed Chair Jerome Powell stated that the US central bank has "taken no decisions" regarding a possible policy shift in September and that it could take some time to see how tariffs might affect consumer prices.
The US Gross Domestic Product (GDP) grew at a 3.0% annual rate from April to June. This number above the 2.4% forecast and came after the first quarter's 0.5% contraction.
A framework trade agreement between the US and the EU was signed on Sunday, and it imposes 15% tariffs on the majority of European exports starting on August 1. According to Bloomberg, this agreement puts an end to a standoff that lasted months.
According to US Treasury Secretary Scott Bessent, Trump will ultimately decide whether to grant any extension, and the US and China will continue discussions on preserving a tariff truce before the deadline in two weeks. Any hope that Trump would reject the extension was dampened by Bessent. It is crucial to remember that because China and Australia are close trading partners, any changes in the Chinese economy could have an effect on the AUD.
China will increase fiscal support to boost domestic demand and lessen growing economic headwinds, according to a statement made by China's Finance Minister Lan Fo'an on Tuesday. He underlined that Beijing will implement more aggressive fiscal policies to help stabilize economy and that there is increasing uncertainty surrounding China's development environment.
In contrast to the 0.9% increase in Q1 and the anticipated 0.8% growth, Australia's Consumer Price Index (CPI) increased 0.7% quarter over quarter in the second quarter. In Q2, annual CPI inflation decreased to 2.1% from 2.4% previously and fell short of the 2.2% market consensus.
In contrast to the prior figure of a 2.1% increase, the monthly Consumer Price Index increased 1.9% YoY in June. On a quarterly and annual basis, the RBA Trimmed Mean CPI increased by 0.6% and 2.7%, respectively, in Q2. In the quarter ending in June, the markets projected a 2.7% YoY and a 0.7% QoQ growth.
The Australian dollar has recovered from monthly lows and is currently trading around 0.6450.
On Thursday, AUD/USD is trading at about 0.6450. Given that the 14-day Relative Strength Index (RSI) has fallen below the 50 level, the technical analysis of the daily chart shows a bearish bias. Short-term price momentum is also weaker because the pair is still below the nine-day Exponential Moving Average (EMA).
On the down side, the July 30 monthly low of 0.6426 could serve as the main support for the AUD/USD pair. If this level is broken, the pair may be under negative pressure to test the June 23 two-month low of 0.6372.
The 50-day EMA of 0.6498 and the nine-day EMA of 0.6506 could be the first barriers that the AUD/USD pair targets. A break above these levels would help the pair explore the area around the eight-month high at 0.6625 and boost the short- and medium-term price momentum.
Today's Australian dollar price
In July, the Non-Manufacturing PMI decreased to 50.1, while China's NBS Manufacturing Purchasing Managers' Index dropped to 49.3.
In July, the Fed maintained its benchmark interest rate between 4.25% and 4.5%.
Thursday saw an increase in the value of the Australian dollar (AUD), ending its five-day downward trend. Following the release of important economic statistics from Australia and its close trading partner, China, the AUD/USD pair holds steady.
In June, Australia's retail sales increased 1.2% month over month, up from 0.5% (revised from 0.2%) in May. The reading above the 0.4% market expectation. In the second quarter, retail sales increased 0.3% QoQ, up from 0.1% in the first quarter (raised from 0%).
In June, Australia's retail sales increased 1.2% month over month, up from 0.5% (revised from 0.2%) in May. The reading above the 0.4% market expectation. In the second quarter, retail sales increased 0.3% QoQ, up from 0.1% in the first quarter (raised from 0%).
As the US dollar ends its winning streak, the Australian dollar rises.
At the time of writing, the US Dollar Index (DXY), which compares the value of the US dollar to six major currencies, is trading at 99.80, ending its recent upward trend. However, as was largely anticipated, the Federal Reserve (Fed) held its benchmark federal funds rate between 4.25% and 4.5% during its July meeting on Wednesday, which helped the greenback gain ground.
In a post-policy conference, Fed Chair Jerome Powell stated that the US central bank has "taken no decisions" regarding a possible policy shift in September and that it could take some time to see how tariffs might affect consumer prices.
In a post-policy conference, Fed Chair Jerome Powell stated that the US central bank has "taken no decisions" regarding a possible policy shift in September and that it could take some time to see how tariffs might affect consumer prices.
The US Gross Domestic Product (GDP) grew at a 3.0% annual rate from April to June. This number above the 2.4% forecast and came after the first quarter's 0.5% contraction.
A framework trade agreement between the US and the EU was signed on Sunday, and it imposes 15% tariffs on the majority of European exports starting on August 1. According to Bloomberg, this agreement puts an end to a standoff that lasted months.
According to US Treasury Secretary Scott Bessent, Trump will ultimately decide whether to grant any extension, and the US and China will continue discussions on preserving a tariff truce before the deadline in two weeks. Any hope that Trump would reject the extension was dampened by Bessent. It is crucial to remember that because China and Australia are close trading partners, any changes in the Chinese economy could have an effect on the AUD.
China will increase fiscal support to boost domestic demand and lessen growing economic headwinds, according to a statement made by China's Finance Minister Lan Fo'an on Tuesday. He underlined that Beijing will implement more aggressive fiscal policies to help stabilize economy and that there is increasing uncertainty surrounding China's development environment.
In contrast to the 0.9% increase in Q1 and the anticipated 0.8% growth, Australia's Consumer Price Index (CPI) increased 0.7% quarter over quarter in the second quarter. In Q2, annual CPI inflation decreased to 2.1% from 2.4% previously and fell short of the 2.2% market consensus.
In contrast to the prior figure of a 2.1% increase, the monthly Consumer Price Index increased 1.9% YoY in June. On a quarterly and annual basis, the RBA Trimmed Mean CPI increased by 0.6% and 2.7%, respectively, in Q2. In the quarter ending in June, the markets projected a 2.7% YoY and a 0.7% QoQ growth.
The Australian dollar has recovered from monthly lows and is currently trading around 0.6450.
On Thursday, AUD/USD is trading at about 0.6450. Given that the 14-day Relative Strength Index (RSI) has fallen below the 50 level, the technical analysis of the daily chart shows a bearish bias. Short-term price momentum is also weaker because the pair is still below the nine-day Exponential Moving Average (EMA).
On the down side, the July 30 monthly low of 0.6426 could serve as the main support for the AUD/USD pair. If this level is broken, the pair may be under negative pressure to test the June 23 two-month low of 0.6372.
The 50-day EMA of 0.6498 and the nine-day EMA of 0.6506 could be the first barriers that the AUD/USD pair targets. A break above these levels would help the pair explore the area around the eight-month high at 0.6625 and boost the short- and medium-term price momentum.
Today's Australian dollar price
