Chinese GDP Posts Downward Trending Growth, Aussie Unchanged
The Australian Dollar was little changed versus its major counterparts as Chinese gross domestic product came across the wires in-line with expectations at 7.4 percent year-over-year for the third quarter. Industrial production figures reported a 9.2 percent increase for September which was also in-line with continuously falling expectations since June 2011. On the surface a seven percent increase in gross production and a nine percent pick-up in industry related activity appears robust however, the overall trajectory since March 2010 when GDP was growing at 12 percent has fallen precipitously.
The Reserve Bank of Australia has recently cited the Chinese slowdown and European Debt crisis as the most significant headwinds facing Australian growth prospects prompting the central bank to lower borrowing rates in October while broad market speculation appears to be pricing in another round of cuts in November.
It seems unclear whether PBOC officials have recently provided enough stimulus as the most recent CPI figures continued to ebb.
The Aussie has recently traded higher over the last few trading sessions as investors have been risk-positive bidding-up most high-yielding, risk sensitive assets after newswires reported Spain may receive a new line of credit while Moody's decided not to downgrade Spanish debt.
AUD/USD, 1 Minute Chart
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