Australian dollar and New Zealand dollar strengthen on encouraging Chinese data

Australian dollar and New Zealand dollar strengthen on encouraging Chinese data

15 Jul 2019 09:45 AM
 

The Australian dollar strengthened on stronger-than-expected economic data from China, which some analysts saw as signalling that moves aimed at reviving spending in the world's second biggest economy are having some success.

China's industrial output bounced in June from a 17-year low in the previous month. June retail sales surged 9.8% from a year earlier, compared with the 8.3% - a slowing from May's tepid figures - that polled analysts expected.

 The Australian dollar rose almost 0.2% to $0.7024 after China's data release. The data also lifted the China-exposed New Zealand dollar by 0.18% to $0.6721.

China's quarterly gross domestic product posted its slowest pace of growth in 27 years, as expected, growing by 6.2% in the June quarter compared to a year earlier.    

 The U.S. dollar, meanwhile, remains under pressure on expectations of a Federal Reserve rate cut. Comments last week from Fed Chair Jerome Powell and Chicago Fed president Charles Evans indicated U.S. rate cuts are needed to boost inflation.

Investors will be looking to U.S. retail sales figures due Tuesday and company earnings for signs of how shoppers and businesses are weathering the slowdown.  Against a basket of currencies the dollar held near a 10-day low at 96.85.

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