News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • The US Dollar could lose some ground against ASEAN currencies such as the Singapore Dollar and Thai Baht amid slowing Emerging Asia Covid case growth. Softer US NFPs may also bode well.Get your market update from @ddubrovskyFX here:https://t.co/jnJ80hQR4P https://t.co/n8UXm0mUeb
  • This week's non-farm payrolls (NFP) will likely be key to gauge the direction of gold as markets look ahead to the Jackson Hole Economic Symposium. Get your market update from @FxWestwater here:https://t.co/WmTrqe0xJN https://t.co/BO2uwXMAko
  • Will be discussing the Japanese #Yen and what you can expect throughout this week in about 15min! Signup for the webinar in the link below! https://t.co/Jbtd2hc5nU
  • Please join @ddubrovskyFX at 20:00 EST/00:00 GMT for a webinar on what other traders' buy/sell bets say about price trends. Register here: https://t.co/AzOQioRZER https://t.co/uy1tAhiwGY
  • RT @FxWestwater: $NZDUSD Wedge Breakout Back in Play on Stellar Q2 Jobs Report Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/08/03/NZDUSD-Wedge-Breakout-Back-in-Play-on-Stellar-Q2-Jobs-Report.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.co/YAIqqu5RDB
  • 🇦🇺 Markit Services PMI Final (JUL) Actual: 44.2 Previous: 56.8 https://www.dailyfx.com/economic-calendar#2021-08-03
  • $AUDNZD likely to attempt closing at a new 2021 low over the remaining 24 hours following the stellar New Zealand jobs report The December 2020 low has been further exposed at 1.0418 since July's #RBNZ rate decision New Zealand bond yields on the rise https://t.co/ipjwkSNt9n https://t.co/ncQX4hL8G3
  • Strong jobs report lifts $NZD - Money markets pricing in a 93% probability of a 25bps hike at the August meeting (previously 77%) - Over the forecast horizon, the RBNZ had projected (in the May MPS) the unemployment rate to gradually fall to 4.3% https://t.co/G5Ejzl2H6L
  • #NZDUSD cautiously higher after solid New Zealand jobs report Unemployment rate declined to 4.0% in Q2 from 4.7% prior (vs 4.4% anticipated) Job gains were at 1.7% y/y vs 1.2% expected Data seems to be supporting the case for a less-dovish #RBNZ given the cease to QE recently https://t.co/XmzhuLXh1H
  • 🇳🇿 Unemployment Rate (Q2) Actual: 4% Expected: 4.5% Previous: 4.7% https://www.dailyfx.com/economic-calendar#2021-08-03
Aussie Dollar and Equities Rally after China 3Q GDP Beats  Expectation

Aussie Dollar and Equities Rally after China 3Q GDP Beats Expectation

Bradley A. Kearns, John Kicklighter,

Talking Points:

  • China’s third quarter GDP printed a 6.9% reading, better than 6.8% expected and 7.0% in 2Q
  • The Nikkei 225 recovered over 1% from its morning low and AUDUSD rose 0.35% after the data was reported
  • This data may help convince China is finding success with a controlled economic slowing in transition

Asian shares and the Australian Dollar rose Monday morning after third quarter GDP data from China printed better than the markets’ expectation. The headline figure showed a reading of 6.9 percent year-over-year as opposed to the 6.8 percent consensus forecast. This print is the lowest reading since June of 2009. China’s GDP from the second quarter was 7.0 percent. Amongst other data releases, retail sales beat forecasts at 10.9 percent annual growth through September versus 10.8 percent forecast. Industrial production meanwhile missed significantly at 5.7 percent versus 6.0 percent projected, while fixed assets grew only 10.3 percent against the 10.8 percent expected. The reading for fixed assets reached its lowest print since February of 2001.

In terms of the global economy, this print may provide some comfort to investors concerned over a hard landing amid the government’s effort to cool overheated engines on lending, real estate and manufacturing. The slowdown in China was a noted concern in the IMF’s recent financial stability report and a major contributor to downtick in global growth forecasts through 2015. This may weigh into another group’s evaluations of the future: the Federal Reserve. The world’s largest central bank admitted the health of the world’s second largest economy in its September monetary policy report. Traders will continue to pay close attention to Chinese data given the importance attributed to the once-dominant emerging market.

From the other side of the coin, the beat in the headline GDP offers a brief respite from building headwinds to trade partners and perhaps lowers the need for an imminent rate cut. That said, the extended slowdown in China may still mobilize other policy authorities to compensate for the important source of growth. From Australia’s point of view, this data may solidify the need for further rate cuts before year’s end. China is Australia’s largest trading partner, which may require further intervention to offset the diminished foreign support. The yield on the Australian two-year government bond rallied when the data was released.

Aussie Dollar and Equities Rally after China 3Q GDP Beats  Expectation

.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES