Australian dollar falls to 3-month low on weak Chinese data

Economy and stock exchange

The Australian dollar fell to a three-month low on Wednesday as weak data from China boosted worries about the global economy as well as the impact of weak domestic wage growth data.

While improved risk appetite has contributed to wider currency stability before the Eurozone economic output data are released, the Australian and New Zealand dollars are losing losses in early European trading.

China announced Wednesday an unexpected weak growth in retail and industrial production in April, putting pressure on Beijing to apply more incentives as the US-led war with the United States continues.

The Australian dollar fell against the US to $ 0.6922, its lowest level since Jan. 3, when a sudden collapse in foreign exchange markets hit major currencies.

Local data added to the reasons for the decline in the Australian currency, as wage growth slowed and the New Zealand dollar fell 0.1 % Against the US dollar to $ 0.6567.

The Chinese yuan recovered slightly during the session to 6.8993 yuan against the dollar but remained close to a five-month low hit on Tuesday.

Meanwhile, the euro remained stable at 1.1214 US dollars, despite preliminary estimates showing that the German economy returned to growth in the first quarter of 2019 after it managed to avoid recession barely in the second half of last year.

– China