The Australian dollar climbed to its highest level on Monday following a solid lending growth in China in January, an optimistic sign for the country’s largest trading partner. The Aussie was trading at US$0.9052 at 05:45 GMT, previously US$0.8994 last Friday. It listed as high as US$0.9069, short of a one-month high.
Chinese bank lending reporter a higher than anticipated leap last month, as Beijing moved to equate lagging economic growth with concerns on mounting debt problems. Normally, banks in China front-load their lending at the start of the year, so huge increases are prevailing. But, the stronger report released by the People’s Bank of China last Saturday indicated government concerns on credit expansion are not holding back borrowing.
Chinese financial institutions released 1.32 trillion yuan (or $217.8 billion) worth of new yuan loans in January, higher than 482.5 billion yuan in December and also larger than 1.07 billion yuan new loans listed in January last year, the central bank noted.
The Aussie dollar missed certain momentum during the Asia day on news of weaker Japanese economic growth figures. Japan is Australia’s second largest trading partner. The Japanese data implied the country’s economy is striving along, with total growth of 1% on an annual basis. But the overall number was pulled down partially by an unusual element – a surge in imports of goods that retailers anticipate they can sell despite increasing domestic demand.
In Monday’s data, inflation-adjusted imports bounced 3.5% on-quarter in the October-December period, the most since the second quarter of 2010. Meanwhile, exports gained only 0.4%, despite a slow down in emerging economies. Part of the increase in the import bill is because of a weaker yen, which makes imported goods more costly.
The RBA retained its benchmark cash rate at 2.50% earlier this month, and said the most likely outcome was for a sustained period of stable rates.
The material has been provided by InstaForex Company – www.instaforex.com
The Australian dollar climbed to its highest level on Monday following a solid lending growth in China in January, an optimistic sign for the country’s largest trading partner. The Aussie was trading at US$0.9052 at 05:45 GMT, previously US$0.8994 last Friday. It listed as high as US$0.9069, short of a one-month high.
Chinese bank lending reporter a higher than anticipated leap last month, as Beijing moved to equate lagging economic growth with concerns on mounting debt problems. Normally, banks in China front-load their lending at the start of the year, so huge increases are prevailing. But, the stronger report released by the People’s Bank of China last Saturday indicated government concerns on credit expansion are not holding back borrowing.
Chinese financial institutions released 1.32 trillion yuan (or $217.8 billion) worth of new yuan loans in January, higher than 482.5 billion yuan in December and also larger than 1.07 billion yuan new loans listed in January last year, the central bank noted.
The Aussie dollar missed certain momentum during the Asia day on news of weaker Japanese economic growth figures. Japan is Australia’s second largest trading partner. The Japanese data implied the country’s economy is striving along, with total growth of 1% on an annual basis. But the overall number was pulled down partially by an unusual element – a surge in imports of goods that retailers anticipate they can sell despite increasing domestic demand.
In Monday’s data, inflation-adjusted imports bounced 3.5% on-quarter in the October-December period, the most since the second quarter of 2010. Meanwhile, exports gained only 0.4%, despite a slow down in emerging economies. Part of the increase in the import bill is because of a weaker yen, which makes imported goods more costly.
The RBA retained its benchmark cash rate at 2.50% earlier this month, and said the most likely outcome was for a sustained period of stable rates.
The material has been provided by InstaForex Company – www.instaforex.com
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