The Australian dollar has fallen in price because of the inflatio...

The Australian dollar has fallen in price because of the inflation data on China

Posted on November 9, 2017, 11:45 AM

On Thursday the Australian dollar fell in price during the Asian trading session, as price growth in China slowed, raising doubts about the prospects for consumer demand, while the New Zealand dollar fell after the Reserve Bank of New Zealand left interest rates unchanged.

In October consumer prices rose by 0.1% in China, although it had been expected that the growth would be 0.2%, as prices for food products fell compared with the same period last year.

NZD/USD currency pair was traded at 0,6952, falling by 0.22%. USD/JPY currency pair has strengthened by 0.11% to 113,75 while AUD/USD currency pair was traded at 0,7682, strengthening by 0.02%.

Earlier, the Reserve Bank of New Zealand left its key interest rate unchanged at 1.75 percent, as expected, warning that the inflation prospects are uncertain as the new government changes policy on many issues.

"The Bank has considered a preliminary assessment of new government policies impact in four areas," said RBNZ Governor Grant Spencer.

The above mentioned four areas are: the cost of the governmental housing construction program, the immigration restriction and the increase in the minimum wage.

"The impact of these policies is rather uncertain," said RBNZ. However, it suggested that together these changes will lead to higher increase in fiscal stimulus than it has been previously expected.

Dmitriy Wainer

NewForex analytics department

 

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