Australian Dollar Climbs Against Most Majors
The Australian dollar strengthened against most major currencies in the Asian session on Friday after a data showed that China’s inflation slowed in August.
China’s inflation eased in August, latest figures from the National Bureau of Statistics showed.
The rate slowed to 6.2 percent in August from 6.5 percent in July. The figure matched economists expectations.
Separately, the statistical office reported that the producer price index rose 7.3 percent year-on-year in August, faster than the expected 7.2 percent increase.
The aussie is now trading at 1.0636 against the greenback and 82.39 against the yen, compared to Thursday’s close of 1.0578 and 81.99, respectively. If the aussie advances further, it may target 1.07 against the greenback and 84.00 against the yen.
Japan’s gross domestic product was down an annualized 0.5 percent in the second quarter of 2011 compared to the previous three months, the Cabinet Office said in a final reading.
That marked a downward revision from last month’s -0.3 percent reading, but was in line with expectations. GDP was down 0.9 percent in the first quarter.
On a yearly basis, GDP was revised down to -2.1 percent from -1.3 percent – again in line with forecasts.
Against the loonie and euro, the aussie reached a 2-day high of 1.0503 and more than a 5-week high of 1.3101, respectively. The next upside target level for the aussie is seen at 1.055 against the loonie and 1.30 versus the euro. The aussie traded at 1.0469 against the loonie and 1.3130 versus the euro at Thursday’s close.
At 1:00 am ET, Japan’s consumer confidence index for August is due for release.
German final CPI and U.K. producer price index – both for August are expected in the European session.
In the New York session, Canada’s jobs data and housing starts for August, U.S. wholesale inventories data for July will be released.
