- AUD/USD remains firm on China data.
- China GDP slipped below forecast on YoY, Industrial Production rallied.
- Market sentiment remains lackluster amid an absence of major trade/Brexit news.
With China’s Industrial Production and Retail Sales rising to a three-month high, AUD/USD remains on the front foot while taking the bids to 0.6832 during early Friday.
Although the quarter-on-quarter (QoQ) figure of China’s third-quarter (Q3) Gross Domestic Product (GDP) met 1.5% forecast, YoY numbers lagged below 6.1% expectations to 6.0%. However, September month Retail Sales matched upbeat forecast of 7.8% and the Industrial Production (IP) for the same month grew past-5.0% market consensus to 5.8%.
Read: China's GDP growth slows to 6% in Q3 while Industrial Production betters estimates, AUD keeps gains
Market sentiment turns sour recently as the United States’ (US) planned tariff on the European Union (EU) goods kick-on today. It should also be noted that the trade-negative comments from the White House Economic Adviser Larry Kudlow and the mixed messages from the Reserve Bank of Australia (RBA) Governor add to the markets’ trouble amid a lack of major news form the trade/Brexit front off-late.
Having witnessed initial reaction to the data from the key customer, Aussie traders will keep an eye over the final round of Fedspeak before the Federal Reserve officials enter the blackout period before the next policy decision. As a result, comments from Robert Kaplan, Esther George, and the Vice-Chair Richard Clarida will be closely followed considering the recent increase in the odds of the Fed rate cut.
Prices need to rally past-100-day Exponential Moving Average (EMA) level close to 0.6855 before advancing further towards 0.6900 round-figure, if not then 0.6810/05 will be the key to watch as a downside break of the same will recall 0.6780 and 0.6755/50 rest-points back to the chart.
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