AUD/USD holds ground around 0.6820 following mixed Chinese data
- AUD/USD gains modest traction in the early Asian session.
- Australian Treasurer said the nation's jobless rate would rise from nearly a 48-year low.
- The latest Chinese data showed mixed figures.
- Markets anticipate the Federal Reserve (Fed) to be dovish in the upcoming meeting on July 26.
- Investors await the Australian monetary policy meeting minutes.
The AUD/USD pair holds modest gains during the Asian session on Monday. The pair retreated from near the 0.6900 area and currently trades around 0.6825, down 0.02% on the day. The Reserve Bank of Australia's (RBA) latest meeting will be released on Tuesday, along with the employment data on Thursday.
At its July policy meeting, the Australian central bank decided to keep the Official Cash Rate (OCR) unchanged at 4.10% following June data from the nation’s Bureau of Statistics revealed that the country’s economy grew at the slowest rate in 1-1/2 years in the latest quarter, with indication of further contraction ahead.
Australian Treasurer, Jim Chalmers, said on Sunday that nation's jobless rate would rise from near a 48-year low despite the slowing global growth and higher interest rates.
It’s worth noting that Michele Bullock will be the first woman to lead the Reserve Bank of Australia (RBA), replacing Philip Lowe. A new RBA Deputy Governor will also be announced in the next few months.
On the US Dollar front, the preliminary reading of the University of Michigan's (UoM) Consumer Confidence Index rose to 72.6 from 64.4 in June, beating the market's expectation of 65.5. Additionally, US consumer prices climbed by 3.0% year on year, down from 4.0% previously, and the Producer Price Index (PPI) increased by 0.1%, down from 0.9% prior. Markets anticipate the Federal Reserve (Fed) to be less hawkish in tightening monetary policy following an expected interest rate hike in the July 26 meeting.
On the other hand, the concerns of an economic slowdown in China remain in focus. The latest data from the National Bureau of Statistics (NBS) revealed that the Chinese Gross Domestic Product (GDP) came in at 6.3% annually, worse-than-expected at 7.3% and 4.5% prior. At the same time, Industrial Production YoY rose by 4.4% from 3.5% prior, above the consensus of 2.7%.
Moving on, the key event to watch will be the Australian monetary policy meeting minutes and Employment data later this week. Also, the US Retail Sales and the Chinese economic data might significantly impact the AUD/USD direction in the near-term.