Created
: 2025.06.09
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
AUD/USD gains ground to near 0.6500 ahead of Chinese CPI inflation data
World FX news
Breaking news
AUD/USD gains ground to near 0.6500 ahead of Chinese CPI inflation data
New
2025.06.09 08:08
2025.06.09 08:08
2025.06.09 08:08
- AUD/USD attracts some buyers to near 0.6500 in Monday's early Asian session.
- US Nonfarm Payrolls rose by 139,000 in May, stronger than expected.
- China's CPI inflation for May will be in the spotlight later on Monday.
The AUD/USD pair edges higher to around 0.6500 during the early Asian session on Monday. The Australian Dollar (AUD) strengthens against the US Dollar (USD) after US President Donald Trump said that the United States (US) will hold trade talks with China on Monday.
Trump stated on Friday that US Treasury Secretary Scott Bessent and two other Trump administration officials are scheduled to talk with Chinese officials in London on Monday. The trade talks come as the US and China have argued over numerous issues amid an escalating trade war. However, the hope of potential trade negotiations between the world's two largest economies provides some support to the China-proxy Aussie, as China is a major trading partner of Australia.
On the other hand, stronger-than-expected US economic data could boost the Greenback and act as a headwind for a pair. Data released by the US Bureau of Labor Statistics (BLS) on Friday showed that the Nonfarm Payrolls (NFP) in the US rose by 139K in May, followed by the 147K increase (revised from 177K) seen in April. This reading came in better than the market expectation of 130K.
Meanwhile, the Unemployment Rate held steady at 4.2% in May, as expected. Annual wage inflation, as measured by the change in the Average Hourly Earnings, steadied at 3.9% in May, beating the estimation of 3.7%.
Traders brace for China's Consumer Price Index (CPI) inflation and Trade Balance reports for May, which will be published later on Monday. If the data shows that inflation in China eases, this could drag the AUD lower against the USD in the near term.
Australian Dollar FAQs
One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment - whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) - is also a factor, with risk-on positive for AUD.
The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. 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.
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 (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.
Iron Ore is Australia's largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.
Last updated
: 2025.06.09
Related articles
US Dollar Index Price Forecast: Trades around 99.00 after pulling back from nine-day EMA
3 minutes agoUSD/CAD remains below 1.3700 due to US Dollar pullback, US-China discussion awaited
54 minutes agoChina's Trade Balance: Surplus widens in May as Imports shrink
2025.06.09 12:08Japanese Yen strengthens in reaction to upward revision of Japan's Q1 GDP print
2025.06.09 12:02Australian Dollar remains stronger following China's economic data
2025.06.09 11:31NZD/USD holds positive ground, China CPI falls in May
2025.06.09 11:17
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
US Dollar Index Price Forecast: Trades around 99.00 after pulling back from nine-day EMA
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is retracing its recent gains from the previous session and trading around 99.00 during the Asian hours on Monday.
New
2025.06.09 13:10WTI retreats from multi-week top, slides to $63.80-$63.75 ahead of US-China trade talks
West Texas Intermediate (WTI) US Crude Oil prices kick off the new week on a softer note and erode a part of Friday's strong gains to levels just above the $64.00 mark, or the highest since April 23.
New
2025.06.09 12:23USD/CAD remains below 1.3700 due to US Dollar pullback, US-China discussion awaited
USD/CAD retraces its gains from the previous session, trading around 1.3680 during the Asian hours on Monday. The pair edges lower as the US Dollar (USD) corrects downward after registering approximately 0.50% gains on Friday following United States (US) jobs data for May.
New
2025.06.09 12:19China's Trade Balance: Surplus widens in May as Imports shrink
China's Trade Balance for May, in Chinese Yuan (CNY) terms, arrived at CNY743.56 billion, expanding from the previous figure of CNY689.99 billion.
New
2025.06.09 12:08Japanese Yen strengthens in reaction to upward revision of Japan's Q1 GDP print
The Japanese Yen (JPY) edges higher at the start of a new week in reaction to an upward revision of Japan's Q1 GDP print.
New
2025.06.09 12:02Australian Dollar remains stronger following China's economic data
The Australian Dollar (AUD) edges higher against the US Dollar on Monday, recovering its losses from the previous session. The AUD/USD pair remains stronger following the release of China's key economic data.
New
2025.06.09 11:31NZD/USD holds positive ground, China CPI falls in May
The NZD/USD pair attracts some buyers to around 0.6035 during the Asian trading hours on Monday. The New Zealand Dollar (NZD) strengthens against the Greenback after the Chinese inflation data. Traders will closely monitor trade talks between the US and China later on Monday.
New
2025.06.09 11:17ECB's Nagel says central bank can take time on policy
European Central Bank (ECB) Governing Council member Joachim Nagel spoke earlier on Sunday and said that the central bank can take its time on interest rates with monetary policy now set at a neutral level that is no longer restrictive, per Reuters.
New
2025.06.09 11:03ECB's Schnabel says inflation is now close to target
European Central Bank (ECB) board member Isabel Schnabel said over the weekend that the central bank can take its time on interest rates, adding that inflation is now close to the ECB's target.
New
2025.06.09 10:58Lagarde speech: Still long way to go until inflation is squeezed out of economy
European Central Bank (ECB) President Christine Lagarde said on Monday that interest rates will therefore have to remain restrictive for as long as necessary to ensure price stability on a lasting basis.
New
2025.06.09 10:46Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
