The Australian dollar recovered from early lows against the other major currencies ahead of European session on Wednesday.
The aussie fell in the previous session due to weak China consumer and producer price inflation in September.
Data from the National Bureau of Statistics showed that Chinese consumer prices grew 1.6 percent year-over-year in September following the 2 percent rise in August. Economists had expected inflation to slow to 1.7 percent.
The producer prices in China declined 1.8 percent annually, more than the 1.6 percent drop estimated by economists. This follows a 1.2 percent decrease in August. Month-on-month, the producer prices fell 0.4 percent in September following the 0.2 percent decline in the previous month.
The Australian dollar recovered to a 5-day high of 1.1147 against the NZ dollar, from an early low of 1.1102.
The aussie, which closed yesterday’s deals at 0.9840 against the Canadian dollar, appreciated to nearly a 1-month high of 0.9910.
Moving away from an early 2-day low of 0.8674 against the U.S. dollar, the aussie edged up to 0.8747. At yesterday’s close, the aussie was trading at against the 0.8711 greenback.
Against the yen and the euro, aussie edged up to 93.92 and 1.4457 from early lows of 92.96 and 1.4554, respectively. The aussie was quoted at 93.25 against the yen and 1.4524 against the euro at yesterday’s close.
If the aussie extends its uptrend, it is likely to find resistance around 1.12 against the kiwi, 1.00 against the loonie, 0.88 against the greenback, 94.74 against the yen and 1.43 against the euro.
The material has been provided by InstaForex Company – www.instaforex.com