While Australia’s economic calendar had no releases today, but China, Australia’s biggest trading partner, released important inflation data. The reports showed better-than-expected results, prompting the Australian dollar to rally. Yet the currency has lost its gains by now and is trading far below the opening level.
The National Bureau of Statistics of China reported that the Consumer Price Index rose 2.1% in July, year-on-year, after increasing 1.9% in the previous month. Analysts had predicted a bit more modest growth by 2.0%.
The Producer Price Index rose 4.6%. That is compared to the forecast increase by 4.4% and the previous month’s growth by 4.7%.
Yet the positive data failed to provide substantial boost to the Aussie, most likely due to the broad-based strength of the US dollar. Now, traders wait for tomorrow’s release of the quarterly Monetary Policy Statement from the Reserve Bank of Australia.
AUD/USD dropped from 0.7428 to 0.7388 as of 17:04 GMT today, retreating from the daily high of 0.7453. EUR/AUD rallied from 1.5615 to 1.5637, bouncing from the daily low of 1.5588. AUD/JPY opened at 82.42, rose the daily high of 82.64, but retreated to 82.01 by now.