Today the AUDUSD currency pair recorded a decline to the exchange rate of 0.7135 during the mid-Asian session on Thursday (7/23). Broadly speaking the pair is still moving in a narrow space around the exchange rate of 0.7130 to 0.7155. 

One of the factors causing the weakening demand for the Australian Dollar is disappointing Australian economic data. Some time ago NAB business confidence data was released for Q2 with the results heading to -12. The result is automatically worse than what was expected by previous investors. 

In addition, problems between the US and China also seem to cause AUDUSD today to lead to a deeper decline. Then the additional burden for the Australian dollar also came after the Aussie Minister of Finance, Mathias Cormann, commented on the economy.
 
He said Australia's economic and fiscal prospects were very uncertain. But fortunately, the Australian Dollar is still receiving assistance from the weakening condition of the US Dollar since yesterday. The weakening is due to the uncertainty of stimulus which is still being debated in the US Senate.

US and China Heats Up Again

The relations between the two countries which are still in conflict now are very hot again. It was reported that the US ordered the Chinese Consultant to leave Houston. Of course, it was getting harsh criticism from the US government. 

So that US diplomats will also evacuate their offices in Wuhan because of this problem. An additional burden that makes AUDUSD still fall today is the condition of the Corona virus in Australia. Victoria reportedly experienced an increase in death cases to 5 people and as many as 403 new cases last Tuesday. 

The next move may be very watchful of the conflict between the US and China which is again heating up. Besides that US data later tonight will also move the pair. The Australian dollar weakened against the US dollar towards the exchange rate of 0.6980 during the Asian session this Monday (7/20). 

Demand for the Australian Dollar has come under pressure after the Chinese central bank took its latest policy move some time ago. Under this policy, PBoC does not change interest rates in tenors of 1 and 5 years. China becomes Australia's main partner for trade. So that the Chinese economy will also have an impact on the Australian Dollar.

Support by Aussie is Also Weakening

In addition, the cause of the weakening Australian dollar also came from the increase in Corona virus cases in many countries. This forced global policy makers to have plans to channel much larger stimulus funds. The Aussie Finance Minister also gave a signal that the move would occur. 

Meanwhile, the European Union is also still in debate over the recovery of 750 billion euros to overcome the pandemic. Reporting from the Financial Times, Axios seems to give a disappointing signal for economic stimulus from the US. It is predicted that the US Senate, McConnell, will only provide a stimulus of around $ 1 trillion. 

Very far from what was expected before that is at $ 3 Trillion. Weaker Australian Dollar support is also seen in the S&P 500 futures contract, which lost up to 0.40% on Monday. Then the global risk benchmark that is the yield of US Treasury bonds in 10 years also did not move at 0.62%.

The AUDUSD currency pair will next look at the various catalysts driving it. The increase in Corona virus cases, especially in Australia will be highly considered by investors. In addition, global problems such as the conflict between the US and China also do not escape the focus of global market participants. Given the very few primary data that can move the global market.