$A falls on soft Chinese trade data

Petrina Berry
(Australian Associated Press)

The Australian dollar has slipped on weak Chinese trade numbers and on a stronger US dollar.

At 1700 AEST on Monday, the local unit was trading at 76.11 US cents, down from 76.48 on Friday.

National Australia Bank global co-head of FX strategy Ray Attrill said the currency had dipped during morning trade as the US dollar rallied on Friday’s strong US jobs data.

US non-farm payrolls showed 255,000 jobs were added in July, much stronger than economists’ expectations of 180,000 jobs.

This drove the greenback higher and other currencies across the board, including the Aussie, lower.

Mr Attrill said the local currency had recovered some lost ground later that morning only to fall again following the release of Chinese trade figures which showed Australia’s biggest trading partner’s imports fell 12.5 per cent.

“Part of that weakness was a fall in imports from Australia and that is not good news for demand for Australian commodity exports and so the Aussie dipped again,” he said.

“That had a minor impact. The Aussie is otherwise holding up quite well.”


One Australian dollar buys:

* 76.11 US cents, from 76.49 cents on Friday

* 77.72 Japanese yen, from 77.28 yen

* 68.66 euro cents, from 68.66 euro cents

* 106.95 NZ cents, from 106.23 NZ cents

* 58.33 British pence, from 58.27 British pence


* The spot price of gold in Sydney at 1700 AEST was $US1,334.2 per fine ounce, down $US29.80 on Friday’s price of $US1,364.


* CGS 5.25pct March 2019, 1.450pct, from 1.423pct on Friday

* CGS 4.25pct April 2026, 1.951pct, from 1.868pct

Sydney Futures Exchange prices:

* September 2016 10-year bond futures contract was at 98.030 (implying a yield of 1.970 per cent), down from 98.115 (1.885 per cent) on Friday.

* September 2016 3-year bond futures contract was at 98.580 (1.420 per cent), down from 98.610 (1.390 per cent).

(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)

Source: IRESS


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