AUD/USD takes a breather after its recent surge.
Following a period of upward momentum in July, the Australian dollar is currently undergoing a correction against the US dollar. The current AUD/USD exchange rate stands at 0.6808.
After reaching a new high on June 16th this year, the Australian dollar entered a correction phase.
Today's economic data from China presented a mixed picture. The only report surpassing expectations was the June industrial production figures, which exhibited a year-on-year increase of 4.4% compared to the previous rise of 3.5%. However, other data points appeared inconsistent.
China's GDP for Q2 2023 grew by 6.3%, showing improvement compared to the previous reading of 4.5%. However, this figure fell short of the expected growth rate of 7.1%. Additionally, the volume of fixed asset investment increased by 3.8% year-on-year, which is lower than the previous month.
Retail sales in June returned to normal levels following a surge in May, while the unemployment rate remained unchanged at 5.2%.
Strong economic indicators from China typically lend support to the Australian dollar, given China's status as Australia's primary trading and economic partner. However, today's reports are more neutral in nature, suggesting that China is addressing its internal challenges at a measured pace.
