The Australian Dollar is slightly growing. Overview for 22.02.2017

Being influenced by the neutral statistics, the AUD/USD pair is trading to the upside a little bit in the middle of the week.

On Wednesday, the Australian Dollar is slowly growing against the USD. The current quote for the instrument is 0.7687.

According to the statistics published today, the MI Leading Index in Australia in December didn’t change after adding 0.4% m/m in November. Before that, the indicator had been slowly growing for five consecutive months, but in December it stopped. Usually, the major contribution to the indicator is made by high energy prices and the employment growth. However, rather “weak” consumer sentiments, mixed attitude on the capital markets, and the construction sector decline come to the forefront in this case. For instance, at the moment it is already known that the Construction Work Done in Australia in the fourth quarter 2016 lost 0.2% q/q although it was expected to add 0.3% q/q. This is probably where all this is coming from.

As Mr. Lowe, the RBA Governor, said, the latest news and reports published by China looked quite favorable for the Australian economy. According to his forecasts, in the next couple of years the CPI was expected to improve slowly and the country’s GDP might expand by approximately 3%. If the employment market improves better than expected, it will be easier to reach the inflation target.

Of course, it’s just statement of facts in order to mistake the wish for the reality. As long as China is combating its own problems and Australia continues diversifying its economy, there will be no heavy growth due to the absence of “extra” resources.

RoboForex Analytical Department