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Forex - AUD/USD erases gains as lower China growth targets weigh

Published 02/28/2011, 03:11 AM
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EUR/AUD
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Investing.com – The Australian dollar erased modest gains against its U.S. counterpart on Monday, after Chinese Premier Wen Jiabao said Sunday that his country will target slower economic growth over the next five years to ease inflationary pressures.

AUD/USD retreated from 1.0186, the pair’s highest since February 8, to hit 1.0164 during late Asian trade, slipping 0.09%.

The pair was likely to find support at 1.0085, Friday’s low and resistance at 1.0199, the high of February 8 and a five-week high.

The Chinese economy has grown 11.1% on average per year between 2006 and 2010, when the previous five-year plan set a growth target of 7.5%.

The country will now aim to grow its gross domestic product by 7% annually in the period from 2011 to 2015, Wen said. China is Australia’s largest trading partner.

The Aussie was also down against the euro, with EUR/AUD rising 0.28% to hit 1.3552.

Later in the day, the U.S. was to publish industry data on pending home sales as well as a report on manufacturing activity in the in the Chicago area. The U.S. was also to release official data on personal consumption expenditure and consumer price inflation.


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