$A steady as China’s growth meets targets

(Australian Associated Press)

The Australian dollar has edged higher against the greenback as China’s latest economic growth figures provided no surprises.

The local unit was trading at 76.76 US cents at 1700 AEDT on Wednesday, up from 76.66 US cents on Tuesday.

The Australian dollar hit a high of 76.91 US cents in overnight trade on the back of improved risk sentiment and commodity price rises.

It fell slightly from that level in local morning trade and slipped modestly again after the release of highly anticipated economic growth data from China, which at 6.7 per cent for the September quarter was right in line with market expectations.

Other figures from Australia’s largest trading partner showed better than expected retail sales and lower than expected industrial production.

“There were no surprises for investors although the production figures were a little weaker than forecasts,” CommSec chief economist Craig James said.

“The Aussie dollar eased from 76.85 US cents to 76.65 US cents after the release of the data.”

Australia’s September employment numbers will be the next major event for currency traders, with the market expecting a slight rise in the unemployment rate to 5.7 per cent when the data is released on Thursday.

CURRENCY SNAPSHOT AT 1700 AEDT ON WEDNESDAY

One Australian dollar buys:

* 76.76 US cents, from 76.66 US cents on Tuesday

* 79.64 Japanese yen, from 79.72 yen

* 69.89 euro cents, from 69.61 euro cents

* 62.51 British pence, from 62.70 British pence

* 106.39 New Zealand cents, from 106.80 NZ cents

GOLD:

* The spot price of gold in Sydney at 1700 AEDT was $US1,261.70 per fine ounce, up $US3.57 from $US1,258.13 on Tuesday.

BOND SNAPSHOT:

* CGS 5.25pct March 2019, 1.721pct from 1.739pct on Tuesday

* CGS 4.25pct April 2026, 2.256pct, from 2.289pct

Sydney Futures Exchange prices:

* December 2016 10-year bond futures contract at 97.725 (implying a yield of 2.275 per cent), up from 97.685 (2.315 per cent) on Tuesday.

* December 2016 3-year bond futures contract at 98.3 (1.7 per cent), up from 98.28 (1.72 per cent).

(* Currency closes taken at 1700 AEDT previous local session, bond market closes taken at 1630 AEDT previous local session)

Source: IRESS

 

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