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Forex – Aussie Holds Gains Despite Weaker China Data, NAB Surveys Support

Euro coins are seen in front of a displayed stock graph in this photo illustration taken in Zenica, Bosnia and Herzegovina, June 30, 2015. Picture taken on June 30, 2015. REUTERS/Dado Ruvic

Investing.com – The Aussie held gains in Asia on Tuesday despite weaker than expected data from China on retail sales and industrial output and supported by business sentiment surveys domestically.

USD/JPY rose 0.07% to 113.70, while AUD/USD gained 0.04% to 0.7626.

In China, fixed-asset investment gained 7.3%, a tad weaker than the 7.4% increase seen in October on year, along with industrial production, which gained 6.2%, missing the 6.3% rise seen and retail sales up 10%, compared with a 10.4% gain expected.

Earlier, Australia reported the NAB business confidence review rose to plus-8 from plus-7 for October and the NAB business survey jumped to plus-21 from 14.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.03% to 94.43.

Overnight, the dollar traded higher against a basket of currencies on Monday buoyed by a slump in sterling amid reports that UK Prime Minister Theresa May is set to face a leadership challenge while positive comments on tax reform from President Donald Trump lifted sentiment on the greenback.

Sterling slump to one-week lows against the dollar amid reports that dozens of members from British Prime Minister Theresa Conservative party had agreed to sign a letter of no-confidence in her as some members doubted May’s ability to lead the UK into a successful Brexit.

Also adding to the dollar strength were tweets from President Donald Trump in which he said that he was “proud” of lawmakers for getting “close” to approving a tax bill.