10 Jun 2013
Flash: AUD continues to weaken into new week - BTMU
Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ notes that the Australian dollar has weakened further overnight with AUD/USD moving to within touching distance of key support at 0.9388, the intra-day low from the 4th October 2011.
He adds that the Australian dollar weakness has been reinforced by further evidence that the Chinese economy is losing upward momentum. He writes, “The annual rate of export and import growth both proved weaker than expected slowing to 1.0% and -0.3% respectively in May. In addition, the annual rate of industrial production growth slowed modestly to 9.2% in May, and new yuan loans also proved weaker at CNY667.4 billion in May.”
He adds that the Australian dollar weakness has been reinforced by further evidence that the Chinese economy is losing upward momentum. He writes, “The annual rate of export and import growth both proved weaker than expected slowing to 1.0% and -0.3% respectively in May. In addition, the annual rate of industrial production growth slowed modestly to 9.2% in May, and new yuan loans also proved weaker at CNY667.4 billion in May.”