AUD is declining even faster. Overview for 01.06.2023

The Australian dollar continues to decline against the US dollar. The current AUDUSD quote is 0.6488.

The Aussie is under increased pressure from a strong USD, and the flow of Chinese statistics. Official reports published by China yesterday reflected a deterioration in the country’s economic activity. China remains Australia’s main trade and economic partner, so anything happening there is important to Australia.

A private survey released today showed China’s factory activity recovered slightly in May. This partially improved the market mood, but the trend remains in place.

Morning statistics showed that Australian retail sales in May were at zero level after growing by 0.4% m/m in April. This might be connected to the seasonality factor.

Interest rate expectations continue to affect the AUD. By August, the rate might reach 4.1% per annum, rising from the current 3.85%.