Forex Asia Review – Aussie falls after China GDP data

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The Australian dollar fell sharply against the US dollar in reaction to disappointing GDP data from China, which is Australia’s major trading partner. Chinese economic growth slowed more than economists forecast, printing growth 8.1 percent, and the lowest in three years.

AUDUSD fell to 1.0383 from a one-week high of 1.0450 hit on Thursday after the aussie was lifted by strong Australian employment data.

 

Yen weakened for the second day, ahead of a meeting by Japanese ministers today to discuss measures against deflation amid speculation the Bank of Japan will add to monetary easing. USDJPY rose to 81.18 from 80.85. EURJPY opened in Asia at 106.63 and hit a high of 107.08.

 

Euro reacted to the weak China GDP data and fell alongside other risk currencies but downside was limited.  EURUSD fell from an earlier high of 1.3199 to 1.3164 but then steadied.

 

GBPUSD tracked the euro dollar and fell after the Chinese data, from 1.5968 to 1.5937. Focus will be on UK PPI data later in the day.