On Tuesday afternoon, AUDUSD took a short break after 6 consecutive trading sessions of stable growth.
The Australian Dollar slowed down its growth against the USD on Tuesday. The current quote for the instrument is 0.6860.
The statistics published in the morning showed that the NAB Business Confidence went from 4 points in July to 1 point in August. The indicator describes the sentiments of employees of the largest Australian companies except for the agriculture sector. Readings above and below zero imply improvement and deterioration of business sentiment respectively.
So far, the indicator is still above zero, but the decline prevents the Aussie from further growth.
In the morning, China reported on the CPI and PPI. Numbers from this country are very important for the Aussie because it’s Australia’s key trade and economic partner. So, the Chinese Consumer Price Index remained unchanged at 2.8% y/y in August, which is pretty good, although it was expected to drop to 2.6% y/y. The Producer Price Index, in its turn, plummeted by 0.8% y/y in August after losing 0.3% y/y in July and against market expectations of -0.9% y/y.
It is apparent that the September report on inflation may show slowdown, which is not very good for the country’s economy in current conditions. Weak inflation may indicate competitive environment slump for manufacturers and weak domestic demand.