AUD grasp on hope. Overview for 15.03.2023

The Australian Dollar paired with the US dollar is gently recovering. The current AUDUSD quote is at 0.6684.

Both the weakening factor of the US dollar and the technical signals are working in favour of the AUD.

The fundamental background looks multidirectional. Australia released its own statistics the day before, which came out weak. Thus, the index of consumer confidence in March turned out to be zero after earlier falling by 6.9%. The Business sentiment index in Australia fell by 4 points after an increase of 6 points a month earlier.

China, Australia's key trading partner, made up for the situation. Its industrial production expanded by 2.4% y/y in February after the January figure of 1.3%. Investment in fixed assets rose 5.5% year-on-year from 5.1% previously. Retail sales rose by 3.5% YoY, fully recovering from a 1.8% slump in January.

On the whole, Chinese data looks positive. This supports the AUD: if China is doing well, it means the Australian economy is doing better too.