The Australian Dollar and the common Euro currency reached a new weekly low against the US Dollar after speculators were disappointed by poorer external trade performance in China.
The Euro dropped 0.3% down to 1,2260 while the Aussie depreciated by 0,7% and reached 1,0497.
China’s export gained only 1% (y/y), thus disappointing analysts (they had expected a 8% increase).
The poor performance gave speculators to understand that the Chinese authorities will probably have to ease the monetary policy in order to stimulate the economic growth.
Meanwhile, the RBA increased the GDP forecast for 2012 from 3% up to 3.5%. For all the buyers of the Australian Dollar, the RBA said that a stronger national currency may jeopardize the national economy. The RBA left the key interest rate unchanged at 3.5%.
According to , the US Dollar index has recently rallied from 71.65 up to 71.78. Technically, AUDUSD hasn’t still finished a bullish move represented by wave 3. However, there are reversal signs – a bearish move of a smaller wave level. Now we should wait for a recovery against the downswing to find out whether it is time to go bearish.
