- PBOC added 32 billion CNY via 7-day reverse repos
- Goldman Sachs gives bearish forecast for Australian economy
- Nikkei opens lower, moves sideways in Asian trading
Traders showed no love for the Australian dollar, as Goldman Sachs announced its downbeat outlook for the Land Down Under. They projected a steeper downturn in mining investment, which might keep economic growth just around 2.3% for 2014. Other downside risks that they mentioned include moderating household incomes, lower government spending, and weaker hiring.
Another factor that weighed on the Aussie was the PBoC’s decision to add 32 billion CNY in 7-day reverse repos, although PBoC Governor Zhou stated that Chinese economic performance is stabilizing. Aside from that, Chinese Premier Li Kequiang was quoted saying that he’d like to see a stronger euro, which helped keep EUR/USD above the 1.3500 handle in the past few hours.
Meanwhile, yen pairs struggled to sustain their recent rallies after the Nikkei stock index opened lower for the week and proceeded to trade mostly sideways in today’s Tokyo trading session. Up ahead, we have U.K. inflation report hearings starting 11:00 am GMT, which might provide additional volatility for pound pairs.
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