Antipodean Currencies Slide On Soft China GDP Data

(RTTNews) - The antipodean currencies such as the Australia and the New Zealand dollars weakened against their major rivals in the Asian session on Monday, after the Chinese economy grew less than expected in the second quarter.

Data from the National Bureau of Statistics showed the nation's gross domestic product logged an annual growth of 6.3 percent in the second quarter, faster than the 4.5 percent expansion in the first quarter. However, this was weaker than economists' forecast of 7.3 percent.

On a quarterly basis, GDP was up 0.8 percent, weaker than the 2.2 percent growth in the first quarter. GDP was expected to climb 0.5 percent.

In June, industrial production was an increase of 4.4 percent from a year ago, better than the expected 2.7 percent growth.

At the same time, retail sales advanced 3.1 percent, slightly weaker than the forecast of 3.2 percent.

Data showed that the urban surveyed unemployment rate came in at 5.2 percent in June.

Meanwhile, the investor sentiment dropped as trader's book some profits after the recent rally on the heels encouraging U.S. inflation data. There is also optimism about the U.S. Fed being close to ending its monetary policy tightening.

Traders remain cautious ahead of the release of the Reserve Bank of Australia's June monetary policy meeting minutes on Tuesday.

Also, the crude oil prices fell after Libya resumed production over the weekend. U.S. West Texas Intermediate Crude oil futures was down at $1.47 or 1.9 percent at $75.42 a barrel. While, the Brent crude futures fell 57 cents, or 0.7 percent, to $79.30 a barrel.

In the Asian trading today, the Australian dollar fell to a 5-day low of 1.6493 against the euro from Friday's closing value of 1.6411. The aussie may test support near the 1.68 region.

Against the U.S. dollar and the yen, the aussie slipped to 4-day lows of 0.6806 and 94.36 from last week's closing quotes of 0.6836 and 94.86, respectively. If the aussie extends its downtrend, it is likely to find support around 0.65 against the greenback and 91.00 against the yen.

The aussie edged down to 0.9001 against the Canadian dollar, from last week's closing value of 0.9032. On the downside, 0.88 is seen as the next support level for the aussie.

Moving away from an early high of 1.0750 against the NZ dollar, the aussie slipped to 1.0724. The next support level for the aussie is seen around the 1.05 region.

The NZ dollar fell to 4-day low of 0.6345 against the U.S. dollar and 1.7691 against the euro, from last week's closing quotes of 0.6368 and 1.7615, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.61 against the greenback and 1.80 against the euro.

Against the yen, the kiwi edged down to 87.95 from Friday's closing value of 88.39. The kiwi may test support near the 85.00 region.

Looking ahead, U.S. NY Empire State manufacturing index for July and Canada wholesale sales data for May are due to be released in the New York session.