Forex - Aussie weaker as China data dims export outlook
Investing.com - The Australian dollar slumped in early Asian trade on Monday as investos noted slowing growth in China, a top export destination for commodities like iron ore.
AUD/USD traded at 0.9010, down 0.31%, while USD/JPY retraced and traded at 107.26, down 0.07% in thin trade with markets shut in Japan.
Data released over the weekend showed that industrial production in China rose at an annualized rate of 6.9% in August, missing estimates for a gain of 8.8% and slowing from an increase of 9% a month earlier.
Fixed asset investment, which tracks construction activity, rose 16.5% in the January-August period, below expectations for a gain of 16.9% and slowing from 17.0% in the January-July period.
The weaker than expected data underlined concerns about China's economy and sparked speculation policymakers in Beijing will have to introduce fresh stimulus to meet the government's 7.5% growth target.
Last week, the U.S. dollar ended its ninth successive weekly gain against a basket of other major currencies on Friday as expectations for an early hike in U.S. interest rates continued to bolster investor demand.
A study by the San Francisco Fed published on Monday indicated that central bank officials see rates rising sooner than markets expect.
The Fed was expected to cut its asset purchase program by another $10 billion at its upcoming policy meeting next week which would keep it on track for winding up the program in October, and to start raising interest rates sometime in mid-2015.
Data on Friday showing that U.S. retail sales rose in August and another report showing that consumer sentiment rose to a 14-month high in September underlined the view that the economic recovery is deepening.
The yen remained under pressure after Bank of Japan Governor Haruhiko Kuroda said Thursday that the bank
would be prepared to immediately loosen monetary policy or implement other measures if its 2% inflation target.
Switzerland reports producer price inflation. In the euro zone, Germany's Bundesbank is to publish its monthly report.
The U.S. is to release reports on manufacturing activity in the Empire State and industrial production.
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