The Australian dollar was in action on June 9, with economic data from China also in focus. In June, the Westpac Consumer Sentiment Index dropped 5.2% to 107.2. The decline in June followed on from a 4.8% drop in May.
The Westpac report contains many interesting details about the economy of the country. According to the report, all components of the index were in decline in June. The outlook for the local economy over the next 12 months fell 10.3%., The outlook for the next five years dropped 1.4%
The Australian dollar fell from $0.77427 to $0.77421 upon release of the figures. At the time of writing, it was down 0.08% to $0.7736.
As stated above, economic data from China also drew attention. The country’s producer price index rose 9% last month from a year ago according to the National Bureau of Statistics. That represented the fastest increase in production since September 2008, when the index rose 9.13%.
The data showed that prices nearly doubled, rising 99.1% for the country’s petroleum and natural extraction industry. In the case of oil, coal, as well as other fuel-processors prices jumped 34.3%.
On the other hand, private consumer costs increased only slightly. The statistics bureau said that the consumer price index rose 1.3% year on year last month, missing expectations for a 1.6% increase.
China’s manufacturers also have to deal with the pressure from an expected drop in overseas purchases. A surge in exports, driven by global demand for face masks and other health-related goods, helped boost the country’s economy in 2020.
Tensions between China and its largest trading partner, the U.S., escalated in the last three years. Chinese exports to the U.S. grew in May from the previous month, but imports declined.
Canadian dollar on Wednesday
Canadian dollar traders were on edge ahead of a central bank meeting on June 9. The country’s central bank is expected to leave rates on hold but flag further tapering of asset purchases, with any surprises on the size or speed liable to boost the Canadian dollar.
China’s yuan was steady around the 6.4 per dollar level on June 9. The U.S. Senate approved a bill aimed at competing with China. That factor affected yuan bull’s recent enthusiasm.
Bitcoin recovered from a three-week low it hit on June 8. At the time of the writing, the price of bitcoin was $34,495.
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