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Forex - Aussie dips despite solid Q3 GDP from China, better retail sales

Published 10/18/2016, 10:25 PM
Updated 10/18/2016, 10:28 PM
Aussie dips after China GDP
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Investing.com - The Aussie traded steady to weaker on Wednesday despite China reporting that GDP growth in the third quarter matched expectations and that overall economic performance was better than expected, aiding sentiment on better demand prospects in the world's second largest economy.

AUD/USD traded at 0.7664, down 0.04%, while USD/JPY changed hands at 103.86, up 0.02%. GBP/USD traded at 1.2294, down 0.03%.

China reported third quarter GDP with a quarter-on-quarter gain of 1.8% meeting expectations along with a year-on-year pace of 6.7% along with solid figures for retail sales, industrial output and fixed asset investment.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.08% to 97.80.

Overnight, the dollar was little changed against the other major currencies on Tuesday, hovering close to a seven-month peak data showing that the cost of living in the U.S. rose at the fastest pace in five months in September.

The U.S. Commerce Department said the consumer price index rose 0.3% in September, in line with expectations and after a 0.2% increase the previous month. Year-on-year, consumer prices increased 1.5% last month, also in line with forecasts and after having risen 1.1% in August. That was its highest reading since October 2014.

Core CPI, which excludes food and energy costs, increased by 0.1% last month, below forecasts for a 0.2% rise. The pickup in inflation indicated that the economy may be able to sustain higher interest rates.

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