The Australian Dollar slowed down its decline. Overview for 19.10.2018

On Friday afternoon, AUDUSD is trading upwards; investors stopped selling the pair.

The Australian Dollar reached stability against the USD and even recovered a little bit at the end of the week. The current quote for the instrument is 0.7126.

In the morning, China reported on several macroeconomic indicators. The GDP Growth Rate in the third quarter was 6.5% y/y after being 6.7% y/y in the previous month and against the expected reading of 6.6% y/y. The indicator was expected to slow down, but not like this.

The Industrial Production in China added only 5.8% y/y in September after expanding by 6.1% y/y in August and against market expectations of +6.0% y/y. However, the Retail Sales report compensated the previous two: in September, the indicator expanded by 9.2% y/y, which was much better than expected. Another positive thing was the Unemployment Rate, which fell from 5.0% in August to 4.9% in September.

In the comments, Chinese authorities said that the country’s economy remained quite “healthy” even with the GDP growth slowdown in the third quarter. Also, it was said that the external financial environment was still a factor of uncertainty.

In 2018, China is expected its economy to grow up to 6.8%. Expectations for 2019 aren’t rather clear yet, but the country is intended to steadily improve its economy.

Positive numbers from China are very important for the Australian Dollar, because China remains Australia’s major trade and economic partner.