Aussie slumps on inflation data

Currencies Direct April 23rd 2014 - < 1 minute read

Australia's dollar dropped across the board on Wednesday (23 April) after the country's inflation data fell short of expectations.

The Aussie exchange rate was also under pressure as figures showed China's manufacturing sector contracted last month.

AUD/USD dipped one per cent to 0.9275, its lowest level in two weeks, while GBP/AUD was up close to one per cent at just over 1.81, a one-month-high.

Earlier, official data showed consumer price inflation in Australia rose 0.6% in the first quarter, which was short of market expectations.

Meanwhile, China's HSBC manufacturing purchasing managers' index scored 48.3, short of the 50 mark that separates contraction from expansion. China is Australia's largest trading partner and signs of weakness in the country's economy are usually negative for the Aussie.

Elsewhere, Sterling remained near multi-year highs versus the US dollar, with GBP/USD at just over 1.68.

The dollar was trading at two-week highs versus the yen, while China's yuan slumped to a 16-month low.

For all the latest news on currency exchange be sure to check out our daily podcasts.

Written by
Currencies Direct

Select a topic: