Forex - AUD/USD falls to fresh 20-month lows on Chinese data

Published 06/10/2013, 02:44 AM
Updated 06/10/2013, 02:51 AM
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Investing.com - The Australian dollar fell to fresh 20-month lows against its U.S. counterpart on Monday, weighed by the weekend's disappointing economic reports out of China.

AUD/USD hit 0.9394 during late Asian trade, the pair's lowest since October 4, 2011; the pair subsequently consolidated at 0.9420, retreating 0.74%.

The pair was likely to find support at 0.9390, the low of October 4, 2011 and resistance at 0.9574, the high of June 7.

Official data showed on Sunday that China's consumer price inflation ticked down to an annualized rate of 2.1% last month, from 2.4% in April, confounding expectations for a rise to 2.5%.

A separate report showed that industrial production in China rose by an annualized rate of 9.2% in May, disappointing expectations for a 9.4% increase, after a 9.3% rise the previous month.

China is Australia's biggest export partner.

Separately, the greenback strengthened after official data on Friday showed that the U.S. economy added 175,000 jobs last month, slightly more than the 170,000 gain forecast by economists.

The data indicated that the economic recovery in the U.S is on track but is not strong enough for the Federal Reserve to begin unwinding its USD85 billion-a-month asset purchase program.

The Aussie was lower against the euro with EUR/AUD climbing 0.55%, to hit 1.4006.


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