Forex: AUD/USD – Emerges above 0.91

on Jul 8, 2013
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iNVEZZ.com Monday July 8th: Advancing in today’s American session, the pair has broken the 0.9100 barrier to trade at 0.9120 so far.

However, the Australian dollar has pulled away from Friday’s three-year low at 0.9049, after release of upbeat US labour market data which saw all majors taking a hit from the USD.
The National Australia Bank’s Business Conditions survey for June will be released at 02:30 BST tomorrow. The Australian business sector has been unnerved by fears of a credit crunch and wider economic turmoil in China, a major factor for the weakness of the Australian dollar in the past several months.

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China’s economy grew at its slowest pace for 13 years in 2012 and in the first half of this year economic news has either underwhelmed or disappointed, with some analysts warning that the country could miss its growth target of 7.5 percent this year.
In May Chinese exports posted their lowest annual growth rate in almost a year with an increase of just one percent. Exports to China’s top two markets – the United States and the European Union – both fell in June y/y for the third consecutive month. Imports fell by 0.3 percent, against expectations for a 6 percent increase, as the volume of many imported commodities fell from a year earlier.

Consumer price inflation slowed to 2.1 percent, the lowest in three months, while producer prices (PPI) fell 2.9 percent, the lowest rate of increase since September. Economic growth slipped to 7.7 percent in the first quarter, down from 7.9 percent in Q4 of 2012.
Both the International Monetary Fund and the Organization for Economic Co-operation and Development have cut their forecasts for China’s economic growth in May y/y, to 7.75 percent and 7.8 percent respectively.
The Chinese Consumer Price Index for June is due out also tomorrow at 02:30 BST.

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