The Australian dollar fell against the US dollar and the Japanese yen today after the release of mixed economic data from China, Australia’s biggest trading partner.
China’s inflation fell unexpectedly in May as the Consumer Price Index rose just 2% according to the National Bureau of Statistics of China while economists had expected the same 2.3% rate of growth as in April. On the bright side, the Producer Price Index fell 2.8% instead of the predicted 3.1%. Apparently, the bad part of today’s data had a bigger influence on markets as proven by the drop of the Australian currency.
AUD/USD dropped from the opening of 0.7470 to 0.7435 as of 12:14 GMT today after rising to the session high of 0.7504 intraday. AUD/JPY declined 1% from 79.92 to 79.11.
If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.
