AUD/USD faced renewed selling pressure at the week's start.
Rising skepticism about China’s latest stimulus measures collaborated with the sour mood.
A strong USD also favored the Aussie’s downside.
The Australian Dollar declined against the US Dollar on Monday following the release of weak China trade data. The AUD/USD fell by 0.45% to 0.6720. The declines in the Australian Dollar were largely due to rising skepticism about the effectiveness of China's latest stimulus measures and a sour mood among traders. In addition, the USD continues strengthening, which is another factor pressuring the pair lower.
Economic forecasts for Australia are mixed with both positive and negative indicators. On the other hand, the Reserve Bank of Australia (RBA) started to turn somewhat dovish, but financial markets anticipate a modest reduction in interest rates of only 0.25% in 2024. The short-term outlook of the Aussie will also be guided with the economic situation in China, which is a large trading partner.
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