The Australian dollar fell today due to the negative macroeconomic data from China. Economic indicators from Australia itself were moderately positive but did not support the nation’s currency.
China’s annual inflation slowed to 1.2 percent in May from 1.5 in the month before, falling short of market expectations of 1.3 percent. The Producer Price Index dropped 4.6 percent last month. Today’s reports followed yesterday’s data that showed a sharp drop of China’s imports, adding to worries that the economic slowdown of Australia’s biggest trading partner will hurt the economy of Australia itself.
AUD/USD fell from 0.7699 to 0.7672 and AUD/JPY dropped from 95.85 to 95.44 as of 17:52 GMT today.
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