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Dollar sinks on weak Chinese trade data

dollar 3The Australian dollar hit its lowest level in almost two weeks following the release of disappointing Chinese trade figures.

At 0700 AEST on Tuesday, the local unit was trading at 75.89 US cents, down from 76.05 cents on Monday.

In overnight trade the currency fell as low as 75.53 US cents, its weakest level since April 2.

Data out on Monday showed that Chinese exports took a surprisingly sharp tumble in the year to March, falling 14.6 per cent, while imports fell 12.3 per cent.

National Australia Bank economist, David DeGaris, said the Australian dollar immediately fell three quarter of a US cent after the figures were released around midday on Monday.

“It was so big in fact that several analysts expressed some disbelief with the figures as reflecting some special factor, seasonal, statistical or otherwise,” he said.

“It will be interesting to see how much of this export weakness is reflected in tomorrow’s China economic growth report.”

Local economic data due out on Tuesday includes the National Australia Bank monthly business survey and the ANZ-Roy Morgan weekly consumer confidence survey.

AAP

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