AUD/USD Struggles Against Stronger USD Amid Mixed Chinese Data
The Australian Dollar (AUD) continues to struggle against the US Dollar (USD), remaining below the mid-0.7100s level despite a modest bounce from its three-week low yesterday. Spot prices are trading near 0.7130, reacting little to China's mixed macro data released today.
China's National Bureau of Statistics reported that Retail Sales rose 0.4% YoY in August, lower than the expected 0.8% growth and down from 0.6% in July. Fixed Asset Investment came in at -7.2% YTD in August, a decline from -6.7% in July.
However, Industrial Production climbed 5.2% YoY during the reported month, surpassing consensus estimates for a reading of 4.8%. The data failed to provide any meaningful impetus to the China-proxy AUD, with a broadly firmer USD driving the pair's momentum.
The US Dollar Index (DXY) remains firm near its two-week high, touched on Monday, and continues to act as a headwind for the AUD/USD pair. Expectations of a US Federal Reserve interest rate hike on Wednesday, along with oil-inflation risks, support elevated US bond yields and the safe-haven Greenback.