The Australian Dollar edged higher after China’s third-quarter GDP data registered modestly better than expected. The Yen may rise as US news-flow fuels risk aversion.
Talking Points:
Aussie Dollar Edges Higher on Modestly Better Than Expected Chinese GDP
US Dollar, Yen May Rise if Upbeat Home Sales Data Fuels Fed Rates Outlook
PlaceEconomic Releases Directly on Your Charts with the DailyFX News App
The Australian Dollar narrowly outperformed in overnight trade, rising as much as 0.3 percent on average against its leading counterparts, following a narrowly better-than-expected Chinese GDP report. Output grew at a year-on-year rate of 7.3 percent compared with economists’ expectations of 7.2 percent. The outcome still amounted to the lowest reading since the post-crisis trough in the first quarter of 2009, painting a picture that is hardly encouraging as markets fret about slowing global performance.
A quiet economic calendar in European trading hours is likely to see traders looking ahead to US news-flow, where September’s Existing Home Sales data is in focus. A print at 5.10 million transactions is expected, marking a 1 percent increase from the prior month. US data outcomes have cautiously improved relative to expectations in recent weeks, which may suggest analysts are underestimating the vigor of the North American behemoth and opening the door for an upside surprise.
Such an outcome may help rebuild Fed rate hike expectations, boosting the US Dollar. Renewed bets on the relatively sooner onset of Fed tightening against a backdrop of swelling global slowdown fears may likewise undermine risk appetite amid fears that US growth will be insufficient to offset downturns in the Eurozone and China. That might put risk-geared currencies under pressure while boosting safety-linked alternatives like the Japanese Yen.
FXCM, L.L.C.® assumes no responsibility for errors, inaccuracies or omissions in these materials. FXCM, L.L.C.® does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. FXCM, L.L.C.® shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials. Opinions and estimates constitute our judgment and are subject to change without notice. Past performance is not indicative of future results.
Recommended Content
Editors’ Picks
AUD/USD risks a deeper drop in the short term
AUD/USD rapidly left behind Wednesday’s decent advance and resumed its downward trend on the back of the intense buying pressure in the greenback, while mixed results from the domestic labour market report failed to lend support to AUD.
EUR/USD leaves the door open to a decline to 1.0600
A decent comeback in the Greenback lured sellers back into the market, motivating EUR/USD to give away the earlier advance to weekly tops around 1.0690 and shift its attention to a potential revisit of the 1.0600 neighbourhood instead.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Bitcoin price shows strength as IMF attests to spread and intensity of BTC transactions ahead of halving
Bitcoin (BTC) price is borderline strong and weak with the brunt of the weakness being felt by altcoins. Regarding strength, it continues to close above the $60,000 threshold for seven weeks in a row.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.