The Aussie has been hit hard in forex trading by the latest data coming out of Asia, especially China. The Aussie relies on its trade with Asia to maintain a great deal of strength. As a result, it is affected by the slowdown in the Chinese economy.

GFT's Boris Schlossberg reports on how China, and Australia's own economy, are influencing the Aussie in forex trading:

Given the sharp fall off in Australian housing demand and the lackluster consumer spending data, it now becomes increasingly doubtful that the RBA will ratchet rates higher in the foreseeable future unless growth shows fresh signs of pick up. The Aussie fell more than 100 points in Asian session as traders absorbed the news and adjusted their interest rate expectations.

With risk appetite fading as well, and equities lower around the world, it is little surprise that the Aussie is having some trouble right now.

Spread bets and CFDs on the sterling should consider that economic weakness remains a problem in Britain. The U.K. pound continues to struggle in spot forex trading as the possibility of another recession looms.

GFT's Boris Schlossberg reports on the sterling in spot forex trading:

Today’s weakness in the Nationwide survey comes after  the weak Land registry numbers and the softer than expected mortgage applications data suggesting that the recovery in UK housing sector is losing momentum. Today’s disappointing housing data along with the decline in GFK consumer confidence reading which registered a decline to -19 from -18 the month prior, confirms our view that the UK economy remains very vulnerable to double dip recession risk.

Spread betting and contracts for differences on the spot forex market should consider that the U.K. pound remains down against the U.S. dollar, even though the euro is moving higher in forex trading, and risk appetite is making something of an appearance.