The Australian dollar slid ahead of the report that is expected to show slower growth of China’s gross domestic product. The potential slowdown means less demand for Australian exports.
According to expertsâ forecasts, the report would show that China’s GDP expanded 7.7 percent in the second quarter of 2012, compared to the growth by 8.1 percent in the first quarter. That would be a slowest rate of growth in three years. Slower growth of China’s economy would be negative for all commodity currencies, but particularly for the Australian one, as the Asian country is the biggest trading partner of Australia.
The Standard & Poorâs 500 Index fell 0.5 percent yesterday. The Stoxx Europe 600 Index was down 1.1 percent. The pessimistic mood on the markets was also detrimental to the Aussie.
AUD/USD fell from 1.0252 to 1.0135 yesterday and traded at 1.0123 as of 1:10 GMT today. AUD/JPY was down from 81.73 to 80.36 on the previous trading session and remained at that level today. EUR/AUD was at about 1.2041 on today’s session after it went from 1.1938 to 1.2033 yesterday.
If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.
Be First to Comment