- Chinese economy expands more than expected in the second quarter.
- US Dollar Index remains below the 97 mark on Monday.
- The RBA is scheduled to release the minutes of its July meeting on Tuesday.
The AUD/USD pair, which closed the previous week above the critical 0.70 mark, pushed higher during the Asian trading hours on Monday boosted by macroeconomic data releases from China and touched its highest level in more than 10 days at 0.7038. As of writing, the pair was trading at 0.7030, adding 0.2% on a daily basis.
The data published from China at the start of the week revealed that the real GDP expanded by 1.6% on a quarterly basis in the second quarter following the previous week’s 1.4% reading and came in slightly better than the market expectation of 1.5%. Moreover, retail sales rose 9.8% on a yearly basis in June and the industrial production grew by 6.3% in the same period to beat analysts’ estimate of 5.2% by a wide margin.
On the other hand, the greenback is having a difficult time finding demand following last week’s selloff and allowing the pair to cling to its daily gains. At the moment, the US Dollar Index, which tracks the dollar’s valuation against a basket of six major currencies, is posting small daily gains at 96.83.
John Williams, President of the Federal Reserve Bank of New York, will be speaking later in the day. The only data from the U.S. will be the NY Fed’s Empire State Manufacturing Index.
Technical levels to consider
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