The commodity currencies such as the Australian, the New Zealand and the Canadian dollars continued to be lower against their major counterparts in the European session on Wednesday, after data showed that China’s industrial production and retail sales growth slowed in April, suggesting a slowdown in the world’s second largest economy.
China’s industrial production and retail sales growth eased more-than-expected in April, suggesting weak economic activity at the start of second quarter.
Industrial production advanced 5.4 percent year-on-year in April, following March’s 8.5 percent increase. The growth rate was forecast to slow moderately to 6.5 percent.
Likewise, annual growth in retail sales eased to 7.2 percent from 8.7 percent a month ago. Sales were expected to expand 8.6 percent.
Meanwhile, fixed asset investment climbed 6.1 percent during January to April period compared to the 6.3 percent expansion logged in January to March period. Economists had forecast 6.4 percent growth.
China is the largest trading partner of Australia and New Zealand.
In economic releases, data from the Australian Bureau of Statistics showed that Australia’s wages grew less-than-expected in the March quarter.
The wages price index climbed 0.5 percent sequentially in the first quarter. That was just below the 0.6 percent rise economists had forecast.
The aussie hovered at a 2-1/2-month low of 0.9323 against the loonie and a 9-day low of 1.0544 against the kiwi, from its early highs of 0.9351 and 1.0561, respectively. The aussie is seen finding support around 0.92 against the loonie and 1.03 against the kiwi.
The Australian currency slipped to a 2-day low of 75.76 against the yen, more than 4-month lows of 0.6919 against the greenback and 1.6205 against the euro, reversing from its previous highs of 76.15 and 0.6947, and a 2-day high of 1.6125, respectively. The aussie is likely to find support around 74.00 against the yen, 0.68 against the greenback and 1.63 against the euro.
Reversing from its early highs of 72.12 against the yen and 1.7033 against the euro, the kiwi moved down to 71.84 and 1.7091, respectively. If the kiwi continues its fall, 69.00 and 1.73 are possibly seen as its next support levels against the yen and the euro, respectively.
The kiwi declined to a weekly low of 0.6560 versus the greenback, from a high of 0.6578 hit at 5:45 pm ET. Next key support for the kiwi is likely seen around the 0.64 level.
Simultaneously, the loonie edged down to 81.24 against the yen, 1.3477 against the greenback and 1.5116 against the euro, off its early high of 81.50, a session’s high of 1.3456 and a 2-day high of 1.5078, respectively. The next possible support for the loonie is seen around 80.5 against the yen, 1.36 versus the greenback and 1.53 against the euro.
Looking ahead, Canada consumer inflation for April, U.S. retail sales and industrial production for the same month, NAHB housing market index and New York Fed’s empire manufacturing survey for May and business inventories for March are due in the New York session.
The material has been provided by InstaForex Company – www.instaforex.com