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China growth concerns weigh on AUD

Published January 22, 2019

Author: Nicholas Cork

All the talk today is around China’s 28 year low for growth posted yesterday with a still impressive number of 6.4%, albeit dampened by slowing domestic demand and the effect of the US tariffs. The US was closed due to the Martin Luther king holiday thus trading was muted overnight, however there is an element of risk-off around thus the commodity currencies have all weakened slightly from yesterday morning. The AUD saw a new low near 0.7140 thus the range for the last few weeks is still loosely intact, but the support levels do appear to be under attack at this time. Some doubts emerging over concrete steps to remedy the trade war are also weighing, but all just talk at this time.

Brexit is still bubbling in the background with May vowing to be ‘more flexible’ with MP’s around the Northern Irish backstop, whilst negotiating a “mutual recognition agreement” around trade with the NZ PM over lunch.

Not expecting too much market activity today post US holiday.