Fears of Slowdown in China Drive Aussie Down
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 experts’ 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.
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.
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Earlier News About the Australian Dollar:
- How Long Can Aussie Gains Last with Softer Chinese Data? (2012-07-11)
- Aussie Weakens Ahead of Employment Report, Pares Losses (2012-07-10)
- AUD Jumps to More Than Four-Month Record vs. EUR (2012-07-04)
- Aussie Climbs with Stocks & Commodities (2012-07-04)
- Aussie Retreats as Market Mood Worsens (2012-07-03)