The Australian Dollar is losing strengths. Overview for 01.02.2019

AUDUSD is retreating on Friday; the Aussie is responding to the news on the US-Chinese trade agreement.

The Australian Dollar is sinking against the USD at the end of the week. The current quote for the instrument is 0.7246. 

The numbers published by Australia in the morning were rather mixed. The AIG Manufacturing Index increased up to 52.5 points in January after being 50.0 points the month before, which means that companies managed to improve along with the consumer demand.

The Australian PPI added 0.5% q/q in the fourth quarter 2018 against the expected reading of +0.6% q/q. The number turned out to be worse than the quarter before, but not critical. 

Despite the American currency weakness on the global currency market, the Aussie was “hit” by comments from the US President Donald Trump about the US-Chinese trade agreement. Trump said that there was no point in talks unless China provides the USA with access to Chinese markets. However, later Trump explained that negotiations between countries might continue even after March 1st, in case they required more work and discussions on the agreement nuances.

These US-Chinese talks are very important for Australia, because China is the key trade and economic partner of the Green continent.