The latest data from Australia showed consumer inflation unexpectedly flat for the first quarter of 2017, against expectations of a slight rise. According to the Australian Bureau of Statistics, Q1 CPI (quarter-over-quarter basis) held flat at 0.5% against a forecasted rise to 0.6%; on a year-over-year basis CPI rose to 2.1% against expectations of a rise to 2.2%. As a result, the Aussie Dollar slipped on Wednesday, with analysts saying that the Chinese growth rate is negatively impacting Australia. Similarly, the New Zealand Dollar was negatively impacted.
As reported at 10:34 am (BST) in London, the AUD/USD was trading lower at $0.75, a loss of 0.46%; earlier the pair had hit a trough of $0.7491. The NZD/USD was down 0.58% to trade at $0.6909, creeping up from the earlier session low of $0.6895.
Loonie Still Under Pressure
The Canadian Dollar also felt the pinch of Chinese growth, with the USD/CAD trading at C$1.3569, down 0.0368%; earlier the pair had hit a trough of C$1.3558 before edging higher. The Loonie is still reeling from the impact of Donald Trump’s levy imposed on soft lumber imports from Canada. Yesterday, there was more rhetoric coming from Trump about the threat from Canadian dairy imports which are miniscule, at best, according to analysts.