Aussie Drops on Weaker Price Pressure, China’s Manufacturing - 23.4.2012

On the first day of the week the Australian dollar fell under pressure, sliding from 1.0383 toward last week’s low 1.0304 against the greenback, as the National Bureau of Statistics reported that producer prices unexpectedly fell in the first quarter of the year. According to the report prices declined by 0.3% over three months ended in March, following a 0.3% gain in the last quarter of 2011. In annual figures the measure fell from 2.9% to 1.4%. Tomorrow the Bureau is scheduled to release consumer prices figures for the same period. According to preliminary estimations CPI annual growth pace may drop to 2.2% from 3.1%, compared with the central bank’s target range of 2%-3%. The aussie extended losses after preliminary reading of a private PMI report on China’s manufacturing, that showed the sector may contract for a sixth month in April, as the index stayed below 50.