AUD/USD rises to 0.6632 as US Q1 GDP growth slows to 1.3%, below expectations. US Initial Jobless Claims increase slightly to 219K; Pending Home Sales plunge in April. Traders focus on upcoming Australian Housing Credit data and China’s NBS PMIs, alongside US PCE Price Index release. At the time of writing, the AUD/USD trades at 0.6632, virtually unchanged, following gains of 0.35%. AUD/USD gains 0.
Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive. How does the health of the Chinese Economy impact the Australian Dollar? China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar .