Aussie Losses Steam Following Yesterday’s Rally

The Australian dollar was retreating against its US counterpart today following yesterday’s huge jump. The currency also fell against other major peers even though Australia’s economic data was rather positive.
Basically, all data from Australia was good. The Westpac Melbourne Institute Index of Consumer Sentiment rose 0.9 percent in October after falling in September. New motor vehicle sales advanced 2.9 percent in September. The Melbourne Institute inflation expectations were almost unchanged this month.
Negativity came from China as both consumer and producer price inflation slowed last month. While today’s data was not as bad, the Aussie remained under pressure from fears of potential economic slowdown in the biggest Australia’s trading partner.
AUD/USD was down from 0.8829 to 0.8793 as of 3:23 GMT today. EUR/AUD advanced from 1.4533 to 1.4585. AUD/JPY declined from 93.50 to 93.25.

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