Aussie Unable to Profit from China’s Stimulus

The Australian dollar fell today with despite news from China that was supportive for the currency. Domestic fundamentals were not in favor of the Aussie and it is likely that poor economic data played a part in the currency’s decline.
The People’s Bank of China injected CNY 500 billion of liquidity by providing money to five major state-owned banks. It was a surprise for traders and good news to growth-related currencies, but the Australian dollar was unable to profit from this, not the least due to unfavorable domestic indicators. The Westpac Melbourne Institute Leading Index fell from -0.75 percent in July to -0.90 percent in August.
AUD/USD slid from 0.9092 to 0.9065 as of 10:20 GMT today. AUD/JPY edged lower from 97.41 to 97.29, reaching the minimum of 97.17 intraday.

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