China is ready to dictate in what direction the Australian dollar will evolve today

• The Australian dollar fell sharply in Monday's early trading, a delayed response, in a way, to Chinese monetary growth data released on Friday.
• China will release today a series of important economic data.
• United States retail sales data will also be published. Donald Trump and Vladimir Putin will also meet in Helsinki

The Australian dollar opened the new trading week back, which helped to recover some of the gains made Friday night.

Here is the dashboard at 7:40. Sydney.

AUD / USD 0.7417, -0.0006, -0.08%
AUD / JPY 83.31, -0.03, -0.04% [19659007] AUD / CNH 4.9744, -0.0044, -0.09% [19659007] AUD / EUR 0.6345, -0.0011, -0.17%
AUD / GBP 0.5605, -0.0003, -0.05%
AUD / NZD 1.0964, 0.0012, 0.11%
AUD / CAD 0, 9772, 0.0007, 0.07%

After climbing earlier in the day, Aussie collapsed in European trade following the release of data on Chinese monetary growth in June , raising new fears of a slowdown in the Chinese economy

"[The data showed] a further decline in money supply M2 growth – 8.0% yoy against 8.3% in May and a level of 8.4% expected – while global credit overall figures lower than expected 1.118 billion yuan, "said Ray Attrill, head of FX strategy at the Nation Australia Bank (NAB).

"The general message is that credit conditions are tightening again After plunging up to 0.7770 on the news, the AUD / USD rebounded sharply in the latter part of the session, seeming to be in sharp trouble. Inspire of a US equity rally until closing

closed the week at .7423, a gain of 0.22% for the session

Regarding the day ahead , the fluctuations of the Aussie will again be influenced by those of the Chinese financial markets, especially with a series of important Chinese press releases.

The flagship act will be the GDP figure in the second quarter, with a median economic forecast which is expected to increase 6.7% year-on-year compared to 6.8% in the March quarter.

It should be noted that several years have pbaded since the GDP figure fell short of market expectations, with a number of mpressions online or 0.1 percentage point above consensus.

GDP report to be released at noon AEST

Arriving alongside the GDP report, the Chinese SNB will also release retail sales, industrial production and fixed urban investment data for June. sales and industrial production are expected to increase by 9% and 6.5% respectively. Urban fixed capital investment is also up 6% in the first half compared to the same period in 2017.

In May, retail sales, industrial production and fixed urban investment rose by 8.5%, 6.8% and% respectively.

Given the busy Chinese economic calendar, movements in the Chinese yuan will likely have an influence on the Australian dollar, maintaining the theme seen in the past month.

Outside Asia, retail sales, business inventories and the Empire State manufacturing index of the United States as well as the euro area trade figures.

US President Donald Trump will also meet his Russian counterpart Vladimir Putin in Helsinki.

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