Aussie Dollar Unchanged as Chinese Industrial Profits Decline
- The Aussie showed tepid reaction against the US Dollar
- China’s Industrial Profits fell 8.8 percent in August
- Soft Chinese print further validates its economic slowdown
The Australian Dollar showed a tepid reaction towards its US counterpart as soft Chinese Industrial Profits data crossed the wires. The negative 8.8 percent print is the largest decline in four years. That said, this is the third consecutive below zero reading for this barometer. The weak figure follows a series of worse than expected data from China. Last week the MNI Business Indicator, a gauge of the country’s economic health, posted its lowest reading since 2007 in regards to Chinese executives’ future expectations. The drop in China’s Industrial Profits adds further evidence of an economic slowdown.
Looking ahead in the week, Chinese PMI figures release on Thursday will tilt the scale of market sentiment to risk aversion or risk appetite. This figure will be watched extensively due to fears of a global slowdown. Lately, investors’ focus on the health of the world’s second-largest economy has been the driver of jitters in the market.