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AUD/USD Outlook after Disappointing Chinese Retail Sales

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AUD/USD is trading lower as the market reacts to Chinese industrial and retail numbers. Early on Monday, data by the National Bureau of Statistics showed that Chinese industrial production grew by 9.8% in April compared to March’s 14.1% YoY. Notably, the figure matched economists’ estimates. On a year-to-date basis, the presented 20.3% was still lower than the prior month’s 24.5%.

At the same time, Chinese retail sales have missed the estimated 24.9% YoY by coming in at 17.7%. The figure is also lower than March’s 34.2%.

Notably, China is Australia’s top partner in two-way trading. Indeed, it accounts for about 29% of Australia’s global trades. For instance, 60% of the iron ore used in the manufacturing of steel in China originates from Australia. As the largest consumer of coal in the world, it also imports the commodity from Australia. As such, lower-than-expected industrial and retail figures from China are…

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