The Aussie remains relatively unchanged this morning to open at 0.7159 after a mostly quiet day in foreign exchange markets. The US also celebrated Martin Luther King Day which didn’t help to induce market action.
The Australian economic calendar remained bare to start the week with direction being driven off-shore. Australia’s biggest trading partner, China, released their GDP figures which reported that China’s growth has receded to its slowest pace since the GFC. Annual growth came in at 6.4%, which was broadly in-line with market expectations but nevertheless a sobering figure in the context of global growth. There was some positive news however with industrial production and retail sales both above expectations, which helped support the Aussie. Adding to the Aussies anxiety though, were reports from Bloomberg that China and the US have so far failed to make progress on the alleged theft of US intellectual property by Chinese companies, a key sticking point in negotiations.
Moving into Tuesday, the Aussie again looks set to enjoy a quiet day on the economic calendar with direction to be dictated by off-shore forces.