Australian, New Zealand Dollar Falls Affecting China’s Growth
July 16, 2010 |11:56 | Currency Rates By : Team X
The demands for exports from South Pacific nations will decrease in China, as a consequence of the fall of Australian and New Zealand Dollar.
China’s growth domestic product became 10.3 percent in the second quarter and the industrial production was slower than it was forecasted in June. Profits have been reported by JPMorgan Chase & Co., the U.S.’s second-largest bank and Spain is auctioning debt, today.
Sue Trinh, a senior currency strategist in Hong Kong said, “The Chinese GDP data effectively put a lid on the rally and Aussie has drifted back down as dollar-yen comes under pressure. The market is rather jittery, and the next 12 hours will be pivotal for risk sentiment, with the Spanish bond auction and also JPMorgan releasing its earnings results”. The Australian Dollar was at US$0.8803 down from US$0.8810 on Wednesday at 0606 GMT. The Australian Dollar was recently at Y77.59 from Y78.34, against the Japanese Yen.
Westpac Strategist, Robert Rennie opined that China will send the Australian Dollar lower. The Federal Open Market Committee minutes as well as China data were on the low side, which is not a good sign for the Australian Dollar. Australia’s Dollar dropped 1 percent to 87.64 U.S. cents as of 4:25 p.m. in Sydney yesterday, from 88.51 cents in New York.
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