In the early today session, the US dollar stopped its rally, encouraging the Australian dollar to grow against the greenback. As a result, traders decided to take profits, which put even more downward pressure on the American economy. The AUD/USD pair is trading at 0.7714. Currency strategists stated that the situation can change in the late afternoon, since the market participants are on edge amid expectations for the US construction statistics. Meanwhile, the Australian labor market posted strong results. The employment rate in Australia rose more than expected in January. According to official data, the number of employed people in Australia rose by 13,500.
The increase was much smaller than the December growth, but it exceeded market expectations. Economists had expected the number of employed to grow by 10,000. Moreover, the Unemployment rate fell to 5.7% from 5.8% in December. Meanwhile, China, the main Australia’s trading partner, shows deterioration in the business environment. According to China’s Ministry of Commerce, foreign direct investment decreased by 9.2% in January from December, when it grew by 5.7%. As for overall economic development, experts forecast China’s GDP to grow by 6.5% in 2017. The People’s Bank of China have not commented on these forecasts yet. However, experts say that the Chinese economy is likely to recover in the nearest future, which could have a positive impact on the sentiment of the investors.
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