Antipodean currencies such as the Australian and New Zealand dollars weakened against their major counterparts in the Asian session on Tuesday after data showed that China’s economic growth slowed unexpectedly in the three months ended December.
Data from the National Bureau of Statistics showed that the Chinese gross domestic product grew 6.8 percent year-over-year in the fourth quarter, slower than the 6.9 percent climb in the third quarter. Economists had expected the growth to remain stable at 6.9 percent. The GDP growth for 2015 eased to a 25-year low of 6.9 percent from 7.3 percent in the previous year. It was also lower than government’s 7.0 percent target.
On a quarterly basis, the economy advanced a seasonally adjusted 1.6 percent in the three month-period to December, but slower than previous quarter’s 1.8 percent rise. It was expected to remain steady at 1.8 percent.
Separately, the statistical office revealed that industrial production rose 5.9 percent in December from a year ago. The expected rate of increase was 6.0 percent.
Retail sales climbed 11.1 percent in December, which was also slower than the 11.3 percent rise expected by economists.
Monday, the Australian and New Zealand dollars held steady against their major rivals.
In the Asian trading, the Australian dollar fell to a 4-day low of 0.9945 against the Canadian dollar, from yesterday’s closing value of 0.9993. The aussie may test support near the 0.98 region.
Against the U.S. dollar, the yen and the euro, the aussie dropped to 0.6839, 80.19 and 1.5943 from yesterday’s closing quotes of 0.6865, 80.51 and 1.5861, respectively. If the aussie extends its downtrend, it is likely to find support around 0.67 against the greenback, 79.00 against the yen and 1.61 against the euro.
The NZ dollar fell to 0.6415 against the U.S. dollar, 75.27 against the yen and 1.6985 against the euro, from yesterday’s closing quotes of 0.6448, 75.64 and 1.6869, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.63 against the greenback, 74.00 against the yen and 1.74 against the euro.
Against the Australian dollar, the kiwi edged down to 1.0681 from an early 4-day high of 1.0627. On the downside, 1.08 is seen as the next support level for the kiwi.
Looking ahead, final German CPI for December is due to be released in the pre-European session at 2:00 am ET.
Swiss PPI for December, Eurozone current account data for November, U.K. consumer price and producer price indices for December and house price index for November, Eurozone construction output for November and CPI for December and the results of the German ZEW economic survey for January are slated for release later in the day.
In the New York session, U.S. NAHB housing market index for January is set to be announced.
The material has been provided by InstaForex Company – www.instaforex.com