Commodity Currencies Extend Fall As China Data Miss Forecasts
May 15 2019 - 1:38AM
RTTF2
The commodity currencies such as the Australian, the New Zealand
and the Canadian dollars continued to be lower against their major
counterparts in the European session on Wednesday, after data
showed that China's industrial production and retail sales growth
slowed in April, suggesting a slowdown in the world's second
largest economy.
China's industrial production and retail sales growth eased
more-than-expected in April, suggesting weak economic activity at
the start of second quarter.
Industrial production advanced 5.4 percent year-on-year in
April, following March's 8.5 percent increase. The growth rate was
forecast to slow moderately to 6.5 percent.
Likewise, annual growth in retail sales eased to 7.2 percent
from 8.7 percent a month ago. Sales were expected to expand 8.6
percent.
Meanwhile, fixed asset investment climbed 6.1 percent during
January to April period compared to the 6.3 percent expansion
logged in January to March period. Economists had forecast 6.4
percent growth.
China is the largest trading partner of Australia and New
Zealand.
In economic releases, data from the Australian Bureau of
Statistics showed that Australia's wages grew less-than-expected in
the March quarter.
The wages price index climbed 0.5 percent sequentially in the
first quarter. That was just below the 0.6 percent rise economists
had forecast.
The aussie hovered at a 2-1/2-month low of 0.9323 against the
loonie and a 9-day low of 1.0544 against the kiwi, from its early
highs of 0.9351 and 1.0561, respectively. The aussie is seen
finding support around 0.92 against the loonie and 1.03 against the
kiwi.
The Australian currency slipped to a 2-day low of 75.76 against
the yen, more than 4-month lows of 0.6919 against the greenback and
1.6205 against the euro, reversing from its previous highs of 76.15
and 0.6947, and a 2-day high of 1.6125, respectively. The aussie is
likely to find support around 74.00 against the yen, 0.68 against
the greenback and 1.63 against the euro.
Reversing from its early highs of 72.12 against the yen and
1.7033 against the euro, the kiwi moved down to 71.84 and 1.7091,
respectively. If the kiwi continues its fall, 69.00 and 1.73 are
possibly seen as its next support levels against the yen and the
euro, respectively.
The kiwi declined to a weekly low of 0.6560 versus the
greenback, from a high of 0.6578 hit at 5:45 pm ET. Next key
support for the kiwi is likely seen around the 0.64 level.
Simultaneously, the loonie edged down to 81.24 against the yen,
1.3477 against the greenback and 1.5116 against the euro, off its
early high of 81.50, a session's high of 1.3456 and a 2-day high of
1.5078, respectively. The next possible support for the loonie is
seen around 80.5 against the yen, 1.36 versus the greenback and
1.53 against the euro.
Looking ahead, Canada consumer inflation for April, U.S. retail
sales and industrial production for the same month, NAHB housing
market index and New York Fed's empire manufacturing survey for May
and business inventories for March are due in the New York
session.
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