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Forex - AUD/USD slides after Chinese data

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Investing.com - The Australian dollar continued to soften against its U.S. counterpart during Tuesday's Asian session following the release of China's June inflation data.

In Asian trading Tuesday, AUD/USD fell 0.36% to 0.9102 and earlier traded as low as 0.9084.

The pair was likely to find support at 0.9038, the low of July 3 and a three-year low and resistance at 0.9179, the high of July 5.

The Aussie fell after China's National Bureau of Statistics said annual consumer inflation there rose to 2.7% in June from May's reading of 2.1%. The report said that China's producer prices fell 2.7% last month following a 2.9% decline in May.

Economists expected consumer inflation of 2.5% and factory prices to fall 2.7%. CPI fell 0.2% on a month over month basis. Economists expected a flat reading. China, the world's second-largest economy behind the U.S., is Australia's top export market.

The Chinese data arrived a day after Australian data showed that ANZ job advertizements fell 1.8% in June, after a 2.5% decline the previous month.

The Aussie is the second-worst performing developed market currency in the world this year, trailing only the Japanese yen and most traders seem to expect it is a matter of when not if that AUD/USD slides to 90 cents.

Strong global data points this week could prompt some Aussie short-covering, which some traders think could lift AUD/USD to 92 or 93 cents, but a break below 90 cents could lead to increased selling pressure.

Elsewhere, AUD/JPY fell 0.10% to 92.15 while AUD/NZD dropped 0.15% to 1.1690.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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