China’s GDP Growth Disappoints Weighing on Aussie, Gold Loses More Than $100 to $1427 - 15.4.2013
The previous week ended with weaker than expected US Retail Sales, they dropped by 0.4% in March compared to revised increase of 1% in February, in addition the University of Michigan released a preliminary US consumer sentiment figure of 72.3 for April while it was expected at 79.1 and lower than 78.6 in March. The US Dollar Index remained in 82.43/82.05 following recent news, though US indices dropped moderately on Friday following S&P’s four consecutive positive sessions and record highs at 1597.00.
Adding to risk aversion on Monday was Chinese GDP data indicating that in the first quarter of 2013 the annual growth contained to 7.7% down from 7.9% in the previous quarter and disappointing expectations of an 8% increase, raising worries that China’s growth is losing momentum. The Australian dollar plummeted against the US dollar following Chinese GDP data, declining from resistance at 1.0522 to 1.0416
Eurozone finance ministers approved at the end of the previous week the rescue plan for Cyprus. Initial plan was for IMF and EU to provide a loan of €10 billion and Cyprus to come up with €7 billion euros, now there are reports that Cyprus financial needs are more and the government has to come up with €13 instead of €7 billion. The EURUSD advanced as high as 1.3134 the previous week and remains steady trading between 1.3134/1.3042. Furthermore, Gold declined from 1555 after ECOFIN approval on Cyprus bailout while breaching key support at 1540 likely to have triggered consequentially stop orders or limit sell orders driving the precious metal more than $100 lower to 1427.