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.

Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bullish
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Bitcoin
Bearish
More View more
Real Time News
  • Spot #gold eclipses $1,600/oz for the second time this year with$XAUUSD trading at its highest level since April 2013. Get your $gld market update from @RichDvorakFX here: https://t.co/gIHErqjf8g https://t.co/RQZIT9bHeM
  • All these pardons...is Martin Shkreli next?
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.84%, while traders in France 40 are at opposite extremes with 78.82%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/vvQXQasbTt
  • Trumps says to expect trade deal with India to be completed after election $USDINR
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.16% France 40: 0.14% US 500: -0.68% Wall Street: -0.94% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/8DKhC9RNGN
  • Gold Nears 7-Year Highs on Coronavirus Impact; Stocks to Slide Next? Latest Analysis via @DailyFX: https://www.dailyfx.com/forex/technical/home/analysis/xau-usd/2020/02/18/gold-nears-7-year-highs-on-coronavirus-impact-stocks-to-slide-next.html
  • Update on #Cryptocurrencies #BITCOIN +3.86% #BITCOINCASH +3.06% #ETHEREUM +8.16% #RIPPLE +4.98% #LITECOIN +4.70%
  • RT @TheEconomist: As covid-19 spreads, multinationals face a rocky few months. ⁠They have failed to prepare for supply-chain disruption and…
  • Here is a weekly chart of my equally-weighted Euro index (of the major crosses). We've slipped the midpoint of the past three years' range https://t.co/MGGZsTJHnd
  • LIVE NOW: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/webinars/1338844901231735299
AUD/USD Edges Up as China First-Quarter GDP Meets Forecast

AUD/USD Edges Up as China First-Quarter GDP Meets Forecast

2016-04-15 03:42:00
Nathalie Huynh,
Share:

Talking Points:

  • China Q1 2016 GDP came in at 6.7%, in-line with market consensus
  • Australian dollar, New Zealand dollar and ASX stocks rallied to daily highs
  • Mixed reaction is seen in other Asian and risk assets

China’s economy grew 6.7 percent through the first quarter from a year earlier, in line with market consensus, although this was also the slowest pace since the global financial crisis. This outcome will likely keep pressure on the Chinese government to sustain or expand their stimulus program amid weakness in the global financial markets. China’s GDP reading through the fourth quarter measured a 6.8 percent pace, and was 6.9 percent in the quarter before that.

Fixed assets investment and retail sales data released at the same time picked up in March, reflecting an improvement in infrastructure investment and new project starts. The housing market also showed signs of recovery in previous readings and via financing figures. This mix of data provides a relief to investors around the world that the second largest economy is reacting positively to stimulus steps. China had rolled out aggressive monetary and fiscal policies in early 2016 to revive its economy and financial market.

AUD/USD Edges Up as China First-Quarter GDP Meets Forecast

Graph created with data from China National Bureau of Statistics via Bloomberg

The Australian dollar was perhaps the asset most affected by today’s Chinese growth data, due to a close trade relationship between the two economies and the AUD’s usage as a proxy to Emerging Asia. The AUD/USD rallied to a daily high of 0.7727 immediately after the data, although it has since subsided to the low 0.77s. Similarly, the New Zealand dollar surged to a 0.6889 high and held around that level. The ASX 200 index also jumped to a high of 5144.1.

AUD/USD Edges Up as China First-Quarter GDP Meets Forecast

Graph created with data from China National Bureau of Statistics and Bloomberg

However reaction from other Asian risk assets was rather mixed. The Shanghai Composite has traded at a loss since today’s opening, while Hong Kong’s Hang Seng Index traded a wide range between a high at 21,423 and a low at 21,234 following the event.

--- Written by Nathalie Huynh, Currency Strategist for DailyFX.com

To receive Nathalie’s analysis directly via email, please SIGN UP HERE

Contact and follow Nathalie on Twitter: @nathuynh

Need a hand to start trading:Free Guides

Want to read the market’s momentum: Speculative Sentiment Index

Want to improve your trading strategy:Traits of Successful Traders

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

DISCLOSURES

News & Analysis at your fingertips.