The Australian Dollar Steady After China’s Economic Data Released
- The Australian dollar maintains its position after mixed economic data from China posted on Monday.
- China’s consumer price index saw a 0.1% decline in May, which was slightly better than the predicted 0.2% drop.
- US Treasury Secretary Scott Bescent is set to meet with Chinese officials later today along with two other representatives.
The Australian Dollar (AUD) is showing some strength against the US Dollar today, clawing back losses from the last trading session. The AUD/USD pair appears robust following significant economic updates from China, which could impact the Australian dollar, considering the close trading relationship between the two nations.
The National Bureau of Statistics in China reported a Consumer Price Index (CPI) that fell by 0.1% in May, following a similar decline in April. The market expected a slightly larger drop of 0.2%. On a monthly basis, the CPI inflation also dipped by 0.2%, compared to a modest rise of 0.1% in April. Additionally, China’s Producer Price Index (PPI) is continuing to decline, with a 3.3% drop recorded for May, following a 2.7% decrease in April.
China’s trade balance exhibited an expansion, reaching a surplus of CNY 74.356 billion in May. Exports saw a year-on-year increase of 6.3%, down from a more substantial rise of 9.3% in April. Conversely, imports fell to a year-over-year growth of 2.1%, down from 0.8% previously.
Traders are closely observing the renewed US-China trade negotiations, with President Trump and Chinese President Xi Jinping agreeing last Thursday to restart talks aimed at resolving trade tensions. Secretary Bescent’s meeting with Chinese officials is highly anticipated.
Sarah Hunter, an assistant at the Reserve Bank of Australia (RBA), expressed concerns that “U.S. tariffs will ripple through the global economy,” warning that increasing uncertainty could hinder investment, production, and job growth in Australia.
The Australian Dollar Gains as the US Dollar Declines
- The US Dollar Index (DXY), which tracks the dollar’s value against six major currencies, is currently trading lower, around 99.00. Still, the dollar received a boost from unexpectedly strong US employment data released last Friday.
- The US Bureau of Labor Statistics reported an increase of 139,000 in Non-Agricultural Payrolls (NFP) for May, a revision from 147,000 previously reported. This figure exceeded the market consensus of 130,000. The unemployment rate held steady at 4.2%, with average hourly earnings remaining stable at 3.9%. Both metrics were better than anticipated.
- This stronger than expected employment data increased speculation that the Federal Reserve might maintain stable benchmark interest rates over the next couple of financial policy meetings.
- In a social media post, President Trump urged Federal Reserve Chair Jerome Powell to lower rates, commenting, “ADP number out!!! Too late. Powell now needs to lower his rate. He’s incredible!!! Europe has dropped nine times.”
- Minneapolis Fed President Neil Kashkari noted signs of a slowing labor market, but emphasized that the Fed must stay alert as uncertainty looms over the economy.
- House Republicans have approved Trump’s “Big Beautiful Bill,” a hefty tax and spending plan projected to increase the budget deficit, raising concerns about prolonged bond yields and leading some traders to offload US assets. There’s anticipation around Senate revisions as GOP lawmakers aim to finalize the bill by July 4th.
- In April, Australia posted a trade surplus of 5,413 million, though exports fell by 2.4% in April after a previously reported 7.2% rise. Imports, however, increased by 1.1%, contrasting with the 2.4% decline noted in March. Additionally, China’s Kaisin Service PMI improved from 50.7 in April to 51.1 in May.
- The Australian Bureau of Statistics revealed a quarterly Gross Domestic Product (GDP) growth of 0.2% in the first quarter, down from the prior 0.6% increase, which was below the anticipated 0.4%. Yearly GDP growth remained steady at 1.3%, also below expectations of 1.5%.
The Australian Dollar Surpasses 0.6500, Reaching Seven-Month High
The AUD/USD is trading around 0.6510 today. Daily chart analysis suggests a sustained bullish outlook, as the pair remains within a rising channel pattern and has surpassed the nine-day exponential moving average (EMA). This indicates strong short-term price momentum, with the 14-day relative strength index (RSI) above the 50 mark.
There’s potential for the AUD/USD to encounter resistance around 0.6538, marking a seven-month high reached on June 5th. If this level is breached, traders might look towards the upper boundary of the ascending channel around 0.6680, aligning with an eight-month peak at 0.6687.
On the flip side, primary support is evident at the nine-day EMA of 0.6481, which corresponds to the lower boundary of the rising channel at 0.6480. A drop below this critical support zone could weaken the bullish sentiment, prompting the AUD/USD to test the 50-day EMA around 0.6408.
AUD/USD: Daily Charts
Australian Dollar Prices Today
The following table displays the rate of change in the Australian Dollar (AUD) against major currencies for today. The Australian dollar currently shows strength against the US dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.15% | -0.19% | -0.26% | -0.07% | -0.22% | -0.29% | -0.04% | |
| EUR | 0.15% | -0.05% | -0.12% | 0.07% | -0.06% | -0.15% | 0.09% | |
| GBP | 0.19% | 0.05% | 0.02% | 0.12% | 0.00% | -0.10% | 0.14% | |
| JPY | 0.26% | 0.12% | -0.02% | 0.19% | -0.03% | -0.10% | 0.09% | |
| CAD | 0.07% | -0.07% | -0.12% | -0.19% | -0.17% | -0.22% | 0.02% | |
| AUD | 0.22% | 0.06% | -0.01% | 0.03% | 0.17% | -0.10% | 0.16% | |
| NZD | 0.29% | 0.15% | 0.10% | 0.10% | 0.22% | 0.10% | 0.24% | |
| CHF | 0.04% | -0.09% | -0.14% | -0.09% | -0.02% | -0.16% | -0.24% |
The heatmap illustrates the rate of change among major currencies. The base currency is selected from the left column, while the currency being evaluated is from the top row. For instance, selecting Australian dollars from the left column and moving horizontally to US dollars indicates the change rate shown as AUD against USD.
