Softer Chinese economic figures and RBA minutes signaling a June rate hold weigh on the Australian dollar.
AUD/USD retreated as weaker Chinese retail sales, industrial production, and investment data pressured the Australian dollar. The figures raised concerns over China’s growth momentum, reducing near-term support for the Aussie.
The Reserve Bank of Australia’s latest minutes reinforced expectations for a pause in June, with policymakers citing a need to assess geopolitical risks and household responses. The RBA’s cautious stance contrasts with earlier hopes for a sustained AUD recovery.
USD/CNY hovered near 6.8000, with limited renminbi strength further dampening AUD sentiment. Markets now price in a higher likelihood of the RBA holding rates steady next month.