Investing.com – The Australian dollar fell against the U.S. dollar during morning Asian trade after a private think tank said inflation accelerated in Australia in December and ahead of data from China on fourth quarter gross domestic product and December retails sales and industrial production.
Australia’s TD-Melbourne Institute Inflation gauge showed a 0.7% increase in December, compared to +0.2% in November. The data also showed a 2.7% year-on-year pace led by higher prices for fruit and vegetables, tobacco, automotive fuel, and a seasonal increase in holiday travel.
In China, GDP for the fourth quarter is due at 1000 local time (0200 GMT) along with industrial output, retails sales and investment for December. The expectation for GDP is 7.6% year-on-year and 2.0 quarter-on-quarter. Industrial production rose 9.8% in December, according to estimates, while retails sales are seen up 13.6%.
China is a top export destination for Australian commodities such as iron ore.
At the weekend, China reported house prices rose strongly again in December from the previous year.
Of the 70 cities surveyed by the National Bureau of Statistics, 23 reported double digit on-year price growth, up from 21 in November. Property prices in the Chinese capital rose 0.5% m/m in December, matching November's growth rate, but moderated to +16.0% from +16.3% on an on-year basis.
AUD/USD traded down 0.07% at 0.8773, USD/JPY traded down 0.06% at 104.25, and NZD/USD traded down 0.04% to 82.53.
Today the U.S. markets will be closed for the Martin Luther King Jr. holiday.
In the U.S., data released on last Friday showed that industrial production rose 0.3% in December, in line with expectations, rising for the fifth successive month.
Another report showed that U.S. housing starts fell 9.8% last month, more than the 8.3% decline forecast by analysts. U.S. building permits rose less-than-expected in December, but remained close to November’s five year highs.
Separately, data showed that the University of Michigan's consumer sentiment index ticked down to 80.4 in January from 82.5 in December. Analysts had expected the index to rise to 83.5.
Last week, data showed that U.S. retail sales posted a larger than expected gain in December.
The data indicated that while the recovery in the U.S. remains uneven, the economic outlook is continuing to improve. The dollar has strengthened broadly since the Fed announced its decision in December to scale back its asset purchase program, cutting it by USD10 million, to USD75 billion-per-month.
During this week ahead, the euro zone is to produce preliminary data on manufacturing and service sector activity, as well as the closely watched ZEW German economic sentiment index. U.S. data on jobless claims and home sales will also be in focus.
Australia’s TD-Melbourne Institute Inflation gauge showed a 0.7% increase in December, compared to +0.2% in November. The data also showed a 2.7% year-on-year pace led by higher prices for fruit and vegetables, tobacco, automotive fuel, and a seasonal increase in holiday travel.
In China, GDP for the fourth quarter is due at 1000 local time (0200 GMT) along with industrial output, retails sales and investment for December. The expectation for GDP is 7.6% year-on-year and 2.0 quarter-on-quarter. Industrial production rose 9.8% in December, according to estimates, while retails sales are seen up 13.6%.
China is a top export destination for Australian commodities such as iron ore.
At the weekend, China reported house prices rose strongly again in December from the previous year.
Of the 70 cities surveyed by the National Bureau of Statistics, 23 reported double digit on-year price growth, up from 21 in November. Property prices in the Chinese capital rose 0.5% m/m in December, matching November's growth rate, but moderated to +16.0% from +16.3% on an on-year basis.
AUD/USD traded down 0.07% at 0.8773, USD/JPY traded down 0.06% at 104.25, and NZD/USD traded down 0.04% to 82.53.
Today the U.S. markets will be closed for the Martin Luther King Jr. holiday.
In the U.S., data released on last Friday showed that industrial production rose 0.3% in December, in line with expectations, rising for the fifth successive month.
Another report showed that U.S. housing starts fell 9.8% last month, more than the 8.3% decline forecast by analysts. U.S. building permits rose less-than-expected in December, but remained close to November’s five year highs.
Separately, data showed that the University of Michigan's consumer sentiment index ticked down to 80.4 in January from 82.5 in December. Analysts had expected the index to rise to 83.5.
Last week, data showed that U.S. retail sales posted a larger than expected gain in December.
The data indicated that while the recovery in the U.S. remains uneven, the economic outlook is continuing to improve. The dollar has strengthened broadly since the Fed announced its decision in December to scale back its asset purchase program, cutting it by USD10 million, to USD75 billion-per-month.
During this week ahead, the euro zone is to produce preliminary data on manufacturing and service sector activity, as well as the closely watched ZEW German economic sentiment index. U.S. data on jobless claims and home sales will also be in focus.