The data on Chinese economy for July had a great impact on stock markets and affected exchange rates as well.
The Asian giant presented alarming figures of foreign trade balance with a significant drop in exports which resulted in world imports exponents.
The Australian dollar suffered the most losing its secondary uptrend against the dollar. It is quite obvious as Australia is one of the largest Chinese exporters. And the recent news undoubtedly influenced the market.
But the euro fall is accounted not only for Chinese poor statistics but also for its own evils. Italy announced that it will probably have to ask for fund bailout from the Eurozone, while Spain's situation does not improve.
Meanwhile, the German finance ministry said added more pessimism stating that the risk of growth slowdown of the Eurozone economy is increasing. As it is seen, the situation is difficult within the European currency which, however, does not leave a fairly narrow price range, like all other leading currencies.
Meanwhile, a significant drop in the price of oil is pushing back its top of the Canadian dollar and the Mexican peso. The loonie was affected the day before by a negative trade balance from Canada. The USD /CAD rate reached 0.9910, where it found support, technically speaking, in the bottom of a bearish channel on the 4 hour chart. Although it has lost 20 points that separate the current price which evidences that it will not be easy to recover.
The pound sterling accompanies the euro with its downward movement, and has just broken the line passing upward by 1.5605. The minimum of the day, 1.5575, can be easily overcome if the price fails to break higher while seeking a pullback against the mentioned line. The trend of the pound for the next few hours, therefore, is bearish.

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