Left Menu
Development News Edition

FOREX-Yuan, Aussie gains as China data offers hope


FOREX-Yuan, Aussie gains as China data offers hope
Representative image Image Credit: ANI

The Australian dollar and its emerging market counterparts gained on Friday as Chinese data showed pressure on the world's second-biggest economy may be starting to diminish, with the offshore yuan rising to a six-month high against the greenback. Though China's economy grew 6.0% in the December quarter from a year earlier, Beijing is widely expected to introduce more stimulus measures in 2020 while investment and demand remain sluggish. Chinese growth for all-2019 of 6.1% was the slowest in 29 years,

"December data signaled a strong finish for the Chinese economy and that suggests the Chinese economy may be primed for a rebound in 2020," said Lee Hardman, a currency strategist at MUFG in London. An index for emerging market currencies rose to its highest level since June 2018 while the Chinese currency in the offshore market rose 0.2% to 6.8636 yuan per dollar, its strongest level since July 2019.

"The Chinese data overnight offered some cause for optimism with the Phase 1 trade deal with the U.S. partially lifting the cloud of uncertainty hanging over the economy," said Craig Erlam, senior market analyst at OANDA. The Aussie is often traded as a liquid proxy for the Chinese yuan as the country's small, open economy is heavily reliant on exports to China.

The local dollar and it's New Zealand counterpart rose 0.2% against the dollar respectively. DOLLAR STURDY

But despite gains by emerging market currencies, the dollar held its ground against its rivals and was on track for a small weekly loss, with the dollar index tracking its strength against six of its major peers little changed at 97.31. Recent data has been mildly supportive of the greenback.

U.S. retail sales increased for a third straight month in December, and the number of Americans filing claims for unemployment benefits dropped for a fifth straight week last week, showing that the labor market remained strong. Elsewhere, the British pound weakened by 0.2% at $1.3050 after worse-than-expected December retail sales.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION/BLOG/INTERVIEW

Future of Food: Technology fostering the road to global food security

Technological innovation can help address most of the pressing issues facing the world today including food security by enhancing productivity, improving financial services, managing resources, addressing environmental concerns, etc....

Conspiracy theories on COVID 19: Legislators, Scientists, and Journalists all joined the Caravan

Conspiracy theories are not new for virus epidemics. There have been conspiracy theories on HIV-AIDS, Polio Vaccines, Ebola Virus, and several other diseases as well. However, what makes the 2019 Novel Coronavirus different from others is ...

Now it’s a war, Uganda deploys army to combat locust swarms

Its for the first time after 1986, the locust swarms have attacked Uganda twice in a season. With the increasing number of countries of Africa under attack by locust swarms, the problem seems to have taken a regional paradigm. Its very diff...

Top 10 Fake News, Myths and Realities on 2019 Novel Coronavirus COVID 19

With nearly 1500 deaths by January 14 and around 65,000 infections in China, the Novel Coronavirus 2019 has become one of the worst health epidemics of the 21st Century. However, 8,573 people have been cured but the rumor mongers are a...

Videos

Latest News

Cavs rally from 22 down, drop Heat in OT

Rookie Kevin Porter Jr. scored a career-high 30 points to help the Cleveland Cavaliers overcome a 22-point, second-half deficit and rally past the visiting Miami Heat 125-119 in overtime on Monday night. The Cavaliers, who are just 8-22 at ...

NE Delhi violence: Kejriwal calls urgent meeting with all party MLAs of affected areas

Chief Minister Arvind Kejriwal on Tuesday said he is very worried about the prevailing situation in certain parts of Delhi and called an urgent meeting of all party MLAs of the violence-hit areas. Violence spiraled over the amended citizens...

Italian hikers rescued in Alaska after visiting infamous bus

An Italian man suffering from frostbite and four other tourists were rescued in the Alaska wilderness after visiting an abandoned bus that has become a lure for adventurers since it was featured in the Into the Wild book and movie. Alaska S...

FPIs from Mauritius will continue to be eligible for FPI registration with increased monitoring as per FATF norms: Sebi

FPIs from Mauritius will continue to be eligible for FPI registration with increased monitoring as per FATF norms Sebi....

Give Feedback