THE TAKEAWAY: AUDUSD hits an intraday low of $0.8997, the lowest level since September 2010
Last night, Chinese Finance Minister Lou Jiwei stated, “We don’t think 6.5% or 7.0% will be a big problem.” This spurs speculation that the Chinese GDP release on July 15 (02:00 GMT) may come in poorly amidst other recent letdowns in Chinese data. This week, China released weak June export numbers: -3.1% y/y actual; +3.7% Bloomberg News survey expected.
AUDUSD 5-minute Chart: July 12, 2013
Charts Created using Marketscope – prepared by Kevin Jin
While Lou’s comments raise worries, the AUDUSD did not drop immediately. The majority of the decline occurred modestly into the London trading session, before New York Open. The intraday low of $0.8997 marks the lowest level on the AUDUSD since September 2010.
--- Written by Kevin Jin, DailyFX Research