Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - Aussie falls further after mixed China trade data, yen stronger

Published 10/12/2015, 10:19 PM
Updated 10/12/2015, 10:21 PM
Aussie down further on China trade

Aussie down further on China trade

Investing.com - The Aussie fell further in Asia on Tuesday after China's exports and imports were mixed.

In China the trade balance for September came in at a surplus of RMB376.2 billion, compared to RMB368 billion in August. Dollar figures were not immediately available. Imports plunged 17.7%, well below the expected drop of 15%, but exports eased 1.1%,better than the 6.3% decline seen.

AUD/USD changed hands at 0.7315, down 0.64%, with the currency's fortunes linked strongly to commodity trade with China. USD/JPY traded at 119.92, down 0.10%.

Earlier, the Bank of Japan minutes from September saw some board members suggest consumer prices may fall in the year ended March with a close eye on oil prices.

As well, bank lending in Japan rose 2.6%, a slower pace than the 2.8% gain in August with firms cautious about implementing capex plans as seen in sluggish machinery orders amid slow domestic consumption and global growth.

Also on Tuesday, Reserve Bank of Australia Deputy Governor Philip Lowe welcomed a weaker Aussie, speaking to the CFA Institute Australia Investment Conference at Sydney.

He repeated the RBA's recent messages that the fall in the Australian dollar is helping the economy re-balance away from mining investment.

Flexibility in the exchange rate is important, Lowe said.

"Depreciation over the past couple of years is playing an important role in helping the economy adjust to the wind down of the boom in mining investment," he said.

In Australia's NAB's business confidence survey for September reached plus-5 from an eapected plus-4 and the August level of plus-1. Business conditions came in at plus-9, the same as August.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.11% to 94.99.

Overnight, the dollar remained broadly lower against the other major currencies in subdued trade on Monday, as declining expectations for a U.S. rate hike before the end of the year continued to weigh on demand for the greenback.

Minutes from the Federal Reserve's September policy meeting, published on Thursday, showed that most policymakers thought an initial rate hike should still come this year and that financial market turmoil had not "materially altered" the outlook for the U.S. economy.

But the minutes also noted that recent global economic and financial developments may have increased the downside risks to the U.S. economy.

The minutes reinforced expectations that U.S. interest rates will remain on hold until well into 2016.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.