AUD/USD appreciates China’s IP over sluggish GDP

  • 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.

Technical Analysis

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.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD struggling to hold above 1.1000

The EUR/USD pair is trading at one-month lows just above the 1.1000 level, undermined by softer-than-expected EU data and persistent uncertainty surrounding the US-China trade relationship.


GBP/USD stuck around 1.2850

The Pound traded lifeless this Tuesday, confined to familiar levels against most rival despite mixed employment data and mounting tensions heading into December’s election.


USD/JPY hits fresh lows under 109.00 as Wall Street erases gains

The USD/JPY pair printed fresh lows during the American session as equity prices moved off highs in Wall Street.


Gold: Remains vulnerable near 3-month lows

Gold remained depressed through the mid-European session on Tuesday and is currently placed near three-month lows, just above $1450 level. 

Gold News

Bitcoin: Google's threat, halving, and the best cost strategy

Google threat Bitcoin ecosystem with its Sycamore Quantum Computer. According to experts, the next halving in the Bitcoin mining rewards will occur on May 14, 2020. Dollar-Cost Averaging strategy has yielded a return of over 500 % since 2014.

Read more