The Aussie fell today on disappointing Chinese data while the Euro dipped, remaining vulnerable to Spanish bond pressure.
Disappointing Chinese GDP data saw the Euro and the Australian Dollar dip today. The Euro remained vulnerable to Euro zone debt concerns, however it is not expected to break out of its recent trading range as against the Dollar.
Australia's economy is commodity driven and as such is also reliant on Chinese demand. Chinese data exerts a strong influence on the Aussie, which came under pressure, after data showed that China's economy grew below forecasts of 8.3% at 8.1% in the first quarter of 2012. This represents the slowest expansion in almost three years for China's economy, the world's second-largest.
China has been affected by a drop in demand in key markets including Europe and the US. Simultaneously, domestic demand has proved difficult to stimulate.
Yesterday, the World Bank had warned that China's economy may slow further in the coming months. It cautioned key risks to growth in the future are a slowdown in Beijing's key export markets and an ongoing correction in China's property markets.
Earlier today, the Australian Dollar had fallen 0.4% to US$1.0391
Speculation of another round of quantitative easing (QE) from the U.S. Federal Reserve, which is likely to support riskier assets, has left many analysts with the view that the Aussie's fall may be temporary.
The Euro remains vulnerable to any sudden blowouts in Spanish bond yields. The yields have climbed in recent weeks on concerns over Spain's fiscal position. Many economists predict that the European Central Bank (ECB) will be forced to resume its so called Securities Markets Program to contain bond yields.
Some analysts are of the view that the ECB buying bonds is a way of pulling markets back from severe stress, however the risk of this is that the market sees it as more negative than positive.
Concerns over Euro zone debt issues receded slightly on Thursday, when Italy cleared its latest round of bond auctions, however the Spanish 10-year yields continued to trade just below 6%.
Markets remain wary about the Euro, with a sense that the old issues are returning to the Euro-region. The Euro was down 0.2% to the Dollar earlier today, at $1.3156.
The major currencies today have shown no reaction to news that North Korea's much hyped long-range rocket, launched earlier in the day, had crashed into the sea shortly after launch.
The Dollar remained steady against the Yen at 80.90, having extending gains since Wednesday's 6 week low of 80.57 Yen.
The markets were also waiting on U.S.CPI inflation data due at 12:30 GMT. In the opinion of many analysts, any sign of stronger inflation might limit the Fed's scope to ease policy further.
Disappointing Chinese GDP data saw the Euro and the Australian Dollar dip today. The Euro remained vulnerable to Euro zone debt concerns, however it is not expected to break out of its recent trading range as against the Dollar.
Australia's economy is commodity driven and as such is also reliant on Chinese demand. Chinese data exerts a strong influence on the Aussie, which came under pressure, after data showed that China's economy grew below forecasts of 8.3% at 8.1% in the first quarter of 2012. This represents the slowest expansion in almost three years for China's economy, the world's second-largest.
China has been affected by a drop in demand in key markets including Europe and the US. Simultaneously, domestic demand has proved difficult to stimulate.
Yesterday, the World Bank had warned that China's economy may slow further in the coming months. It cautioned key risks to growth in the future are a slowdown in Beijing's key export markets and an ongoing correction in China's property markets.
Earlier today, the Australian Dollar had fallen 0.4% to US$1.0391
Speculation of another round of quantitative easing (QE) from the U.S. Federal Reserve, which is likely to support riskier assets, has left many analysts with the view that the Aussie's fall may be temporary.
The Euro remains vulnerable to any sudden blowouts in Spanish bond yields. The yields have climbed in recent weeks on concerns over Spain's fiscal position. Many economists predict that the European Central Bank (ECB) will be forced to resume its so called Securities Markets Program to contain bond yields.
Some analysts are of the view that the ECB buying bonds is a way of pulling markets back from severe stress, however the risk of this is that the market sees it as more negative than positive.
Concerns over Euro zone debt issues receded slightly on Thursday, when Italy cleared its latest round of bond auctions, however the Spanish 10-year yields continued to trade just below 6%.
Markets remain wary about the Euro, with a sense that the old issues are returning to the Euro-region. The Euro was down 0.2% to the Dollar earlier today, at $1.3156.
The major currencies today have shown no reaction to news that North Korea's much hyped long-range rocket, launched earlier in the day, had crashed into the sea shortly after launch.
The Dollar remained steady against the Yen at 80.90, having extending gains since Wednesday's 6 week low of 80.57 Yen.
The markets were also waiting on U.S.CPI inflation data due at 12:30 GMT. In the opinion of many analysts, any sign of stronger inflation might limit the Fed's scope to ease policy further.
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