$A surges after relief over Chinese GDP

THE Australian dollar hit an almost three-week high after traders breathed a sigh of relief over China's latest economic growth figures.

At 1700 AEDT on Thursday, the local unit was trading at 103.81 US cents, up from 103.13 cents on Wednesday.

During local trade, the currency, rose as high as 103.98 US cents, its highest level since October 1.

Early in the afternoon, it was announced that China's gross domestic product (GDP) growth slowed to 7.4 per cent in the September quarter.

It was the lowest rate in more than three years but retail sales and investment improved in a possible sign the slump might be stabilising.

Forex.com research analyst Chris Tedder said the market was relieved that China's GDP were not disappointing, which helped the Australian dollar rise.

"Anticipation of Chinese growth figures flat-lined Asia's commodity currencies early in the session, with investors nervous about the possible impact of the data," he said.

"Overall, China is expanding at a pace the market deems acceptable, which is important for investor sentiment and, in turn, commodity currencies."

Mr Tedder said the Australian dollar looked at if it could get to 104.00 US cents but as it neared that level investors start to sell it to take profits.

"A push through this level may pave the way for a push back towards 105.00 US cents," he said.

"Now that the Chinese data is out of the way, the near-term direction of the Aussie, and many other risk assets for that matter, may be determined by the success or failure of the upcoming EU summit.

The European Council will meet in Brussels on October 18 and 19.

At 1700 AEDT, the Australian dollar was at 82.16 Japanese yen, up from Wednesday's close of 81.11 yen, and at 79.20 euro cents, up from 78.78 euro cents.

Meanwhile, Australian bond futures prices moved lower.

Westpac senior market strategist Damien McColough said a global shift towards higher risk assets such as equities saw local bond futures prices fall for the third straight day on Thursday.

"I don't think there is a major bearish trend under way, it is just correcting some relatively strong pricing," he said.

Mr McColough said the Chinese economic growth figure was roughly in line with market expectations and many had expected an even weaker number.

He predicted that the sell-off in local bond futures was likely to stall on Friday.

At 1630 AEDT on Thursday, the December 10-year bond futures contract was trading at 96.855 (implying a yield of 3.145 per cent), down from 96.965 (3.035 per cent)

The three-year bond futures contract was at 97.450 (2.550 per cent), down from 97.550 (2.450 per cent).

Anda sedang membaca artikel tentang

$A surges after relief over Chinese GDP

Dengan url

http://ceritaperdanaku.blogspot.com/2012/10/a-surges-after-relief-over-chinese-gdp.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

$A surges after relief over Chinese GDP

namun jangan lupa untuk meletakkan link

$A surges after relief over Chinese GDP

sebagai sumbernya