China July data dump disappoints: Retail sales drop to 8.8%, industrial output dip to 6.0%

Dhwani Mehta FXStreet

China’s July retail sales YoY, the number came in at 8.8% vs 9.0% exp and 9.0% last, with industrial output YoY at 6.0% and 6.3% exp and 6% last. Meanwhile, urban investment YoY stood at 5.5% vs 6.0% expected and 6.0% last, the latest release by the National Bureau of Statistics (NBS) showed on Tuesday.

Awful Chinese macro numbers intensified China slowdown fears and paused the corrective bounce in the Australian Dollar, sending the AUD/USD pair to the 0.7270 region, while AUD/JPY Is seen back below the 80.50 barrier.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD revisits 1.1780, or daily lows

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to reach daily troughs on Thursday. The pair’s decline comes in response to a sudden bout of USD strength amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD makes a U-turn, challenges 1.3500

GBP/USD rapidly leaves behind Wednesday’s strong advance, putting the 1.3500 support to the test on Thursday. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold sticks to the bid bias, flirts with $5,200

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The precious metal adds to Wednesday’s optimism despite the Greenback trades in a firm fashion, although geopolitical tensions in the Middle East keep the yellow metal bid for now.