The Australian Dollar is under pressure Overview for 01.02.2018

The AUD/USD pair is falling faster based on the mixed statistics from Australia.

The Australian Dollar started falling faster against the USD on Thursday. The current quote for the instrument is 0.8016.

This morning, Australia published several macroeconomic reports, which raised more questions than gave answers. The AIG Manufacturing Index in January increased up to 58.7 points after being 56.2 points the month before, which is a pretty significant improvement. The indicator has been expanding for 15 months in a row, which is the longest streak over last 13 years.

The details of the report show that all seven components, from employment to manufacturing, expanded last month. This trend has been seen since November 2017. It’s interesting to notice that the numbers of manufacturing and sales are growing much faster due to the significant increase of new orders. This report was surely positive for the Aussie, but the one that followed spoiled and ruined everything.

The Building Permits in Australia plummeted in December by 20.0% m/m, although it was expected to decrease only by 7.9% m/m. In November, the indicator added 12.6% m/m. On YoY, it lost 5.5% after expanding by 18.5% the month before. The major “contribution” was made by private dwellings (-39.2%) along with residential construction prices (-25.0%).

The statistics is very confusing because of such significant decrease. Investors responded in a very negative way, thus influencing the Aussie’s behavior. However, before drawing any conclusions one should wait for the January readings.

RoboForex Analytical Department