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Forex - Aussie weaker ahead of China GDP, BoJ review ahead

Published 07/14/2015, 07:57 PM
Updated 07/14/2015, 07:59 PM
Aussie wekaer ahead of China GDP
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Investing.com - The Australian dollar was weaker on Wednesday ahead of GDP data in top trading partner China , while the yen gained ground ahead of the latest central bank monetary review.

AUD/USD traded at 0.7466, down 0.11%, while USD/JPY changed hands at 123.32, down 0.06%. EUR/USD changed hands at 1.1006, down 0.02%.

Ahead in Australia comes the Westpac-MI Consumer Confidence survey for July at 1030 (0030 GMT). The latest survey will capture impact of offshore events in Greece and volatility in China's share market.

China is expected to report GDP gained at a 6.9% pace in the second quarter year-on-year, or a 1.7% quarterly clip. As well, industrial out likely rose 6.0% in June year-on-year, while retail sales jumped 10.2% in the same month.

In Japan, the BOJ's monetary policy decision and statement are due around 1230 in Tokyo (0330 GMT). The BoJ is expected to stand pat on monetary policy and policymakers will review their medium-term forecasts for economic growth and inflation presented in April. BoJ Governor Haruhiko Kuroda's news conference is at 1530 (0630 GMT).

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.02% to 96.79.

Overnight, the dollar regained ground against the other major currencies on Tuesday after initially falling to session lows when data showed that U.S. retail sales unexpectedly fell last month.

The dollar turned lower after the Commerce Department said retail sales fell 0.3% in June, compared to expectations for a 0.2% increase.

May’s retail sales were revised down to 1.0% from 1.2% previously.

The data added to concerns over the outlook for second quarter growth.

The dollar had weakened slightly earlier in the session amid concerns that testimony by Federal Reserve Chair Janet Yellen to Congress on Wednesday could push back expectations on the timing of an initial rate hike.

The euro remained under pressure as investors waited to see if the Greek parliament would support harsh austerity measures demanded by the country’s creditors in exchange for a deal to avoid financial collapse.

Greek Prime Minister Alexis Tsipras was meeting with MP's on Tuesday, but faced an uphill battle to win support for a third bailout deal offered by the country’s creditors.

Four pieces of legislation must be passed by the end of the day on Wednesday, including pension and sales tax reforms.

Meanwhile, talks on a bridging loan for Athens, to cover repayments to the European Central Bank in July and August, were continuing in Brussels.

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