Australian dollar slides
Yesterday, the Australian dollar has got a small boost from stronger-than-expected data from its top trading partner China. The local currency edged up 0.2 per cent to $0.7282 on Thursday after sitting on the fence for most of the day.
The currency had climbed to a six-week peak of $0.7300 on Wednesday as the greenback slipped after US President Donald Trump’s Republican Party failed to gain dominance in the House of Representative following US midterm elections.
On Thursday, official data out of China showed exports sprang 15.6 per cent in October from a year earlier, while imports expanded 21.4 per cent, both handily beating expectations.
The numbers were closely watched by the market with China’s economic outlook clouded by US tariffs.
“Anything that is good for the Chinese economy is good for the Australian dollar,” said Kyle Rodda, Melbourne-based analyst at IG Markets.
“We haven’t seen a great deal of price action today but any data that does support the notion that the Chinese economy is being supported and is stronger … that’s a largely positive thing.”
Governor Philip Lowe offered a taster on the outlook earlier this week, noting that inflation would slightly pick up to 2.25 per cent in 2019 and a “bit higher” the following year.
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