AUD Extends Gains as China Increases Imports

The Australian dollar extended its gains today as China, the major Australia’s trading partner, increased its imports, improving trading prospects of the South Pacific nation.
According to the Customs General Administration of China, imports grew 14.1 percent in March from a year ago, beating the median forecast of 6 percent. At the same time, exports advanced 10 percent. The resulting trade deficit was $880 million.
Yesterday, China’s National Bureau of Statistics reported that the Consumer Price Index from 3.2 in February to 2.1 in March. Slowing inflation led to speculations that China will refrain from tightening its monetary policy.
AUD/USD rose from 1.0485 to 1.0504 as of 6:01 GMT today. EUR/AUD declined from 1.2469 to 1.2447 and AUD/JPY went up from 103.84 to 104.10.

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