The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
The AUD/USD pair is trading at $0.9083, down 0.2% after the ANZ job advertisement report dropped by 0.8% in November. The report is a measure of job advertisements in major daily newspapers and websites, which provides a gauge of what the jobs market is like. Last week it was revealed that the Australian economy grew by only 0.6% in the third quarter of 2013; this was below expectations and underlines the decline in the economy.
China announced consumer price index (CPI) and producer price index (PPI) figures that were broadly in line with expectations; CPI came in at 3% while PPI came in at -1.4%. Falling commodity prices are contributing to a declining PPI.
China recently revealed its largest trade surplus in more than four years, but there are still questions hanging over the Chinese interbank market. The Peoples Bank of China has made a number of cash injections to improve liquidity; if credit conditions decline, we could see the Australian dollar head towards $0.9.