Australian Dollar Declines Ahead Of China GDP Data
14 April 2015 - 8:54PM
RTTF2
The Australian dollar fell against its major rivals in European
deals on Tuesday, as traders await China GDP data due tomorrow,
amid concerns over slowdown in the world's second largest
economy.
China's GDP growth is expected to slow 7.0 percent in the first
quarter from last year, down from the 7.4 percent increase in the
previous quarter. That would be the slowest level of economic
output since the global recession.
Alongside the GDP data, reports on factory output, retail sales
and fixed asset investment are also due.
China is Australia's largest trading partner. The strong ties
between the two nations could impact the Australian currency.
The Australian stock market also ended lower on concerns over
slowdown in China. The benchmark S&P/ASX200 index was down 13.7
points, or 0.23 percent, at 5,947 points, while the broader All
Ordinaries index fell 11.9 points, or 0.2 percent, to 5,916
points.
In economic front, data from the Australian Bureau of Statistics
showed that the total value of owner occupied housing commitments
in Australia increased in February.
The value of owner occupied housing commitments, excluding
alterations and additions, rose a seasonally adjusted 0.5 percent
month-on-month in February. On an unadjusted basis, it climbed 1.0
percent.
The currency fell sharply on Monday, after disappointing Chinese
trade data. For the day, the aussie slipped 1.13 percent against
the greenback, 0.88 percent against the euro, 1.01 percent against
the loonie, 0.14 percent against the kiwi and 1.17 percent against
the yen.
The aussie slipped to 90.46 versus the yen, its lowest since
April 2, from an early high of 91.37. The aussie is likely to
challenge support around the 87.5 zone.
The aussie reversed from early highs of 0.7623 against the
greenback and 1.3873 against the euro, edging down to 0.7554 and
1.3969, respectively. If the aussie extends slide, it may find
support around 0.74 against the greenback and 1.42 against the
euro.
Extending early decline, the aussie hit a 1-week low of 0.9518
versus the loonie. This is lower by 0.36 percent from Monday's
closing value of 0.9552. Continuation of the aussie's downtrend may
lead it to a support around the 0.94 area.
The aussie ticked down to 1.0152 against the NZ dollar, after
climbing to 1.0198 at 10:00 pm ET. Next key downside target for the
aussie is seen around the 1.00 mark. At yesterday's close, the pair
was valued at 1.0179.
Looking ahead, U.S. retail sales and producer price index for
March and business inventories for February are set for release in
the New York session.
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