The calendar in Asia today is on the thin side to say the least, but we do have some Chinese data out.
China industrial profits for April came in at -3.7% y/y. The previous reading in March was +13.9%, but it wasn’t really in keeping with the trend.
Over the course of the year, industrial production has been falling. We will get a more key data point from China on Friday morning which is Manufacturing PMI.
As such there was only a muted response to the data. The AUD/USD is pushing higher today, but only marginally.
It had a weird week last week led by a few key things:
- Conservative Government re-elected.
- RBA looking at a cut.
- Lending restrictions eased on homebuyers.
These different elements had the Aussie open the week higher, before selling off. Finally, it was the weak USD that dragged it up on Thursday and Friday.
So the thing to watch early this week is really just if 0.6900 can hold up as support, or if the Aussie will fall as soon as the Greenback bounces.