The Australian Industry Group Performance of Manufacturing Index dropped sharply by -7 to 51.3 in November. That’s the lowest level since October 2017. It’s still the twenty-six months of uninterrupted recovery and expansion, longest streak since 2005. Also from Australia, building approvals dropped -1.5% mom in October, below expectation of -1.4% mom. Company operating profits rose 1.9% qoq, below expectation of 2.9% qoq. From New Zealand terms of trade index dropped -0.3% qoq, below 0.1% qoq expectation.
But overall, AUD/USD couldn’t care less about the weak data. It surges sharply today on news of US-China trade war ceasefire. AUD/USD should now be in medium term rebound to 0.7446 fibonacci level.
