When is China Q4 GDP and how could it affect the AUD/USD?
China Q4 GDP overview:
China is set to publish the gross domestic product (GDP) for the fourth quarter at 07:00 GMT. The economy is seen expanding 1.6 percent quarter-on-quarter (q/q) and 6.7 percent year-on-year (y/y). The slight slowdown will most likely be due to the cooling property sector, China's crackdown on debt risks and factory pollution. Also, the growth rate would still be above China's annual growth target of around 6.5 percent. Also scheduled for release are industrial production (expected 6.0 percent y/y) and retail sales (expected 10.1% y/y).
How could the data affect the AUD/USD?
A better-than-expected China Q4 GDP could put a bid under the Aussie dollar. However, the AUD bulls look tired as the pair failed to cut through 0.80 in Asia despite upbeat Aussie data. So, a sustained move above 0.80 could be seen only if the forward-looking retail sales indicator betters estimates. Also, the uptick in factory output could boost the Aussie dollar.
On the other hand, a weaker-than-expected data could yield a much needed technical correction in the AUD/USD pair.
China: Key economic events today - Barclays
About Chinese GDP
The Gross Domestic Product (GDP) released by the National Bureau of Statistics of China studies the gross value of all goods and services produced by China. The indicator presents the pace at which the Chinese economy is growing or decreasing. As the Chinese economy has an influence on the global economy, this economic event would have an impact on the Forex market. Generally speaking, a high reading is seen as positive (or bullish) for the CNY and AUD, while a low reading is seen as negative (or Bearish).
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
