The Australian dollar is threatening to break 0.9000 early in the week after a round of soft Chinese data and a report that officals are reluctant to cut rates. The aussie was also the best performer last week while US dollar edged out the euro as the top performer. CFTC data showed cable traders leaning toward a No vote.
The early-week story is a quarter-cent slide in the Australian dollar after a round of softer Chinese data. Retail sales were expected up 12.1% y/y but rose just 11.9%. The larger miss was in industrial production as it rose just 6.9% y/y compared to 8.8% expected.