Australian dollar hits headwinds

Financial and commodity markets analytics

The Australian dollar is holding below US73c in late trading today as more disappointing data hit the market over the weekend from China casting a cloud over the world’s 2nd largest economy.

At 9.30pm (GMT) the Aussie dollar was trading at US72.90c after falling as low as US72.48c earlier in the day.

Figures released from China over the weekend showed Industrial output grew by 6.0% in April, down from the 6.8% figure reached in March the National Bureau of Statistics reported on Saturday.

The number was also well below the 6.6% figure expected by analysts.

The Retail sales figure, a key indicator of consumer confidence also disappointed investors coming in at 10.1% in April and down from 10.5% in March.

Analysts that were surveyed had been expecting a number of 10.6%.

This is just another round of bad news for the Aussie dollar after recent disappointing local data which has seen the Aussie dollar tumble around US7c in a matter of weeks.

Analysts at CBA, one of Australia’s biggest banks have sharply revised their forecast for the Australian dollar after up until recently predicting that it would hitUS80c.

They now see the currency trading at around current levels before finishing aroundUS73c by the end of the year. 


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