China GDP Q2 overview:
Today, China releases its GDP data for Q2 at 0200GMT. China's economy is estimated to have grown 6.8 percent in the second quarter of 2017, with some analysts arguing that China's economy will remain stable but with a slight slowing trend. China's economy grew 6.9 percent in Q1 from a year earlier, slightly faster than expected. This was supported by a government infrastructure spending spree and a housing market that has shown signs of overheating. Casting our minds back, Premier Li Keqiang said during the annual meeting of parliament in March that the nation is aiming to expand its economy by around 6.5 percent this year.
How could the Chinese GDP affect AUD/USD?
Given that China has shown steady growth in the economy, an inline number should be supportive of the Aussie given how much China invested last year down under. China's investment surged by 11.5% in 2016 to $11.5b amid booming demand for agricultural assets and infrastructure projects, and a record number of deals were signed with Chinese companies. AUD/USD has eyes on the 2015 high near 0.8165 on a break of 0.8000 according to analysts at Brown Brothers Harriman. 0.7834 is the resistance and April 2016 highs as a key level in the near term; A break of here would be significant. Otherwise, a triple top scenario could be carved out on a denoting miss, with the 14th July low at 0.78 the figure as a meaningful target. The detail of the miss would be key to such an event; Growth may be inhibited due to the worsening labour and debt conditions amid deepening cuts in excess industrial capacity. However, the US dollar is out of favour currently and this week holds key Aussie jobs data. Moves on Chinese GDP may be limited whichever way the event plays out.
Key notes:
AUD/USD a star performer, sights on the 2015 high near $0.8165 - BBH
US CPI: inflation below expectation in June - Wells Fargo
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).
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY pops and drops on BoJ's expected hold
USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood
AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed.
Gold consolidates near record high, bullish potential seems intact
Gold price regained positive traction on Thursday and rallied back closer to the all-time peak touched the previous day in reaction to the Federal Reserve's decision to start the policy easing cycle with an oversized rate cut.
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases
In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.