THE TAKEAWAY: Australian and Chinese data showed signs of strength > Japanese economy contracted > AUD and JPY little changed
The Australian Dollar was little changed as investment lending increased by 5.5 percent in October and home loans grew moderately by 0.1 percent highlighting strength in the credit markets and underscoring recent commentary by RBA officials that Australian banks have had no trouble accessing funding.
Meanwhile in China, which is Australia’s largest trading partner, consumer price figures were released over the weekend where price inflation came in-line at 2.0 percent for November, year-over-year, while industrial production figures posted slightly stronger than expected increasing by 10.1 percent. Retail sales in China also met analyst’s projections growing by 14.9 percent in November. During today’s session, Chinese trade figures came across the wires where exports grew by 2.9 percent missing expectations set at 9.0 percent. Imports were unchanged and the total trade balance came in at $19.63 billion, down from the last reading in October at $32.05 billion.
The economic docket was not as rosy for Japan as gross domestic product contracted by 0.9 percent in the third quarter while the current account balance decreased by 29.4 percent in October. However, Forex traders appeared little responsive as BoJ officials have recently expressed their concern over Japan’s weakening economy.
Price action on a daily chart for the AUD/USD pair remains within the upper portion of large consolidation hinting Forex traders may find some resistance when trying to bid the price higher.
AUD/USD, Daily Chart