AUD/USD – Investors Shrug off Poor Chinese Data

AUD/USD (0.7029)

Some points to consider in this Forex market:

• Traders as well as the Australian Dollar shrugged off a poor showing of economic data today.
• China’s industrial profits fell off 8.8 percent in August.
• Another soft print of China’s economic data validates an economic slowdown.

The AUD/USD Forex market and traders, shrugged off soft Chinese industrial numbers, as profit news crossed the wire, earlier in the trading day. The negative 8.8 percent is the biggest decline in nearly four years. This is the third reading in a row for this number. This weak release follows a string of tepid Chinese data including the MNI Business Indicator which dropped to its lowest level since 2007. Corporate executives in China do not a have a favorable position on the world’s second largest economy.

Yet more evidence of a slowdown in China.

There are some event risks on the calendar this coming week. China will release their PMI figures on Thursday. This event will move the sentiment scale one way or the other. This number will be watched closely as worldwide traders are jittery about a global economic slowdown. As of later, investor jitters about China, which is the world’s second largest economy, have been driving the worldwide financial markets.