Aussie Holds Gains Despite Weaker China Data, NAB Surveys Support

Aussie Holds Gains Despite Weaker China Data, NAB Surveys Support
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(November 14, 2017) The Aussie held gains in Asia on Tuesday despite weaker than expected data from China on retail sales and industrial output and supported by business sentiment surveys domestically.

USD/JPY rose 0.07% to 113.70, while AUD/USD gained 0.04% to 0.7626.

In China, fixed-asset investment gained 7.3%, a tad weaker than the 7.4% increase seen in October on year, along with industrial production, which gained 6.2%, missing the 6.3% rise seen and retail sales up 10%, compared with a 10.4% gain expected.

Earlier, Australia reported the NAB business confidence review rose to plus-8 from plus-7 for October and the NAB business survey jumped to plus-21 from 14.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.03% to 94.43.

Overnight, the dollar traded higher against a basket of currencies on Monday buoyed by a slump in sterling amid reports that UK Prime Minister Theresa May is set to face a leadership challenge while positive comments on tax reform from President Donald Trump lifted sentiment on the greenback.

Sterling slump to one-week lows against the dollar amid reports that dozens of members from British Prime Minister Theresa Conservative party had agreed to sign a letter of no-confidence in her as some members doubted May’s ability to lead the UK into a successful Brexit.

Also adding to the dollar strength were tweets from President Donald Trump in which he said that he was “proud” of lawmakers for getting “close” to approving a tax bill.

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