Australia’s dollar rose from a 3 1/2-year low after data showed growth in China, the nation’s biggest trading partner, was better than economists forecast.
A decline in Australia’s 10-year (GACGB10) bond yield, which touched an 11-week low, was limited after reports indicated gains last month in Chinese industrial production and retail sales were close to analyst expectations. New Zealand’s currency briefly extended losses after an earthquake shook the capital city of Wellington. The gap between Australia and New Zealand’s two-year swap rates widened on Jan. 17 to the most in five years ahead of inflation reports for both countries.
“Leading into the data, the market was clearly short the Aussie,” said Jonathan Cavenagh, a Singapore-based foreign-exchange strategist at Westpac Banking Corp, referring to bets the Australian dollar would decline. “Given the Chinese data was not as bad as what some in the market were fearing, then we’ve seen a subsequent position squeeze.”
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015