The Australian dollar was a bit soft today on concerns about slowing economic growth in China. The currency did not fall far after yesterday’s big jump, and it looks like the Aussie has bottomed out, ending the downtrend.
Analysts estimated that the growth of China’s gross domestic product may slow from 7.7 percent in 2013 to 7.4 percent in 2014. It is still a robust value compared to many other countries, but the slowdown is enough to make traders nervous. China is the biggest trading partner of Australia, making Australian currency especially vulnerable to any bad news from the Asian country.
Poor employment data from the United States spoiled investors’ mood even more. Still, the Aussie was pretty resilient after the Australian central bank hinted that it is not going to perform an interest rate cut in the foreseeable future.
AUD/USD went down from 0.8923 to 0.8915 as of 22:32 GMT today. EUR/AUD advanced from 1.5143 to 1.5174 and AUD/JPY fell from 90.69 to 89.83 before trading at 90.50.
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