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 Gains Amid Strong China Data; BOJ’s Comments in Focus

Published 04/17/2019, 12:18 AM
Updated 04/17/2019, 12:18 AM
© Reuters.

© Reuters.

Investing.com - The Australian dollar gained on Wednesday in Asia after China, its biggest trading partner, reported strong GDP data.

The AUD/USD pair gained 0.2% to 0.7190 by 12:18 AM ET (04:18 GMT).

China’s economy expanded at an annualized rate of 6.4% in the first quarter of 2019, beating the expected growth rate of 6.3%. Industrial output and retail sales were also stronger than expected.

Yesterday, data showed housing prices in China rose at the fastest pace since 2017 in March.

The Aussie took a brief hit overnight after the Reserve Bank of Australia said it believes a cut in interest rates would be "appropriate" should inflation stay low and unemployment trend higher.

Meanwhile, the NZD/USD pair lost 0.5% as the country’s annual inflation slowed in the first quarter, raising the chances of an interest rate cut in the coming months.

The U.S. dollar index that tracks the greenback against a basket of other currencies traded near flat at 96.60.

Charles Evans, president of the Chicago Fed, told CNBC earlier this week that he would be “comfortable” with interest rates staying put until the autumn of 2020 to help ensure inflation returns to the Fed’s target rate of 2%.

“I can see the funds rate being flat or unchanged into the fall of 2020. For me that’s to help support the inflation outlook and make sure that its sustainable at 2% or a little above,” Evans said.

The GBP/USD pair edged up 0.1% to 1.3059 after Labour leader Jeremy Corbyn denied a report that Brexit talks with Prime Minister Theresa May’s government had stalled.

The USD/JPY pair was largely unchanged at 111.95. Bank of Japan’s deputy governor Masayoshi Amamiya said on Wednesday that the central bank is ready to deploy monetary policy tools in event of financial crisis.

"One of the factors that led to Japan's asset-inflated bubble (in the late 1980s) was the fact we kept monetary policy easy even as the economy continued to expand," Amamiya said in parliament.

"The BOJ must be mindful of the potential risks to the economy and prices, including financial imbalances," he said, adding that "in terms of monetary policy, we're ready to respond if financial problems have a big impact on the economy."

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.