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.