Australian dollar daily update for 31st October 2017


The Australian dollar remains range bound, after tumbling lower last week. The currency is flat against the dollar and the euro this morning, while weakening against the pound. This morning, Chinese manufacturing PMI data missed expectations, suggesting that China's economy is set to decelerate in the coming months. As we covered in our analysis of the recent 19th Party Congress, the longer term outlook for the Australian dollar looks weak thanks to a coming slowdown in Chinese growth. Looking at news from Australia, President of the Senate Stephen Parry now believes he may be a dual citizen (Parry is also British). Last week, the Australian High Court ruled that five of seven MPs were ineligible to serve in parliament. The ruling resulted in Turnbull's government losing its one-seat majority in the lower house of parliament.  

AUD/USD is currently trading just above 0.7680. Looking at EUR/AUD, the pair is currently just above 1.5160. The GBP/AUD exchange rate is currently above 1.720.   

This is a pretty light week for the Australian dollar. New home sales (-6.1% vs. 9.1% prior) and private sector credit (0.3% vs. 0.5%) were weak and lower than previous figures. Tomorrow, we'll see AiG performance of manufacturing indices and the trade balance. Finally on Friday, we’ll see retail sales figures. Last week saw inflation figures miss expectations.