Australian Dollar Falls On Disappointing China Data

(RTTNews) - The Australian dollar weakened against other major currencies in the European session on Monday, as traders' sentiment dropped following some weaker-than-expected economic data out of China.

Data from the National Bureau of Statistics showed that the China's consumer prices remained unchanged in June from a year ago, following a 0.2 percent rise in May. Prices were expected to climb again by 0.2 percent.

On a monthly basis, consumer prices dropped 0.2 percent, while the expectations was for no change.

Another data from the NBS showed that producer prices declined 5.4 percent on a yearly basis, sharper than the 4.6 percent decrease in May and economists' forecast of 5.0 percent fall. This was the biggest decline since December 2015.

The crude oil prices also fell after China's inflation concerns and the U.S. rate hike fears.

Brent crude futures fell 55 cents, or 0.7 percent, to $77.92 a barrel. While the U.S. West Texas Intermediate crude was at $73.31 a barrel, also down 55 cents, or 0.7 percent.

In the European session today, the Australian dollar fell to nearly a 1-month low of 94.69 against the yen and nearly a 2-week low of 1.6478 against the euro, from early highs of 95.48 and 1.6379, respectively. If the aussie extends its downtrend, it is likely to find support around 90.00 against the yen and 1.67 against the euro.

Against the U.S. and the Canadian dollars, the aussie edged down to 0.6646 and 0.8836 from early highs of 0.6696 and 0.8889, respectively. On the downside, 0.64 against the greenback and 0.86 against the loonie are seen as the next support levels for the aussie.

Moving away from an early 5-day high of 1.0788 against the NZ dollar, the aussie slipped to 1.0758. The aussie may test support near the 1.05 region.

Looking ahead, Canada building permits for May, U.S. wholesale inventories for May and consumer inflation expectations for June are due to be released in the New York session.

At 10:00 am ET, Federal Reserve Bank of San Francisco President Mary Daly will participate in fireside chat hosted by the Brookings Institution Hutchins Center on Fiscal and Monetary Policy, in Washington D.C., U.S.

At the Same time, Federal Reserve Bank of Cleveland President Loretta Mester is scheduled to speak virtually on the economic and policy outlook before the University of California, San Diego 2023 Economics Roundtable Lecture Series: ", in Cleveland, Ohio.

At 11:00 am ET, Federal Reserve Bank of Atlanta President Raphael Bostic will participate in "National and Metro Atlanta Economies" armchair conversation before the Cobb Chamber of Commerce Marquee Monday event, in Atlanta, U.S.

At 2:00 pm ET, Bank of England Governor Andrew Bailey will give a speech at the City of London's annual Mansion House dinner, in London.