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
Mixed
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
Bearish
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
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
Bitcoin
Bearish
More View more
Real Time News
  • RT @YuanTalks: #PBOC cut yuan’s fixing by 89 pips to 7.0306 per USD, vs 7.0217 one day earlier.
  • RT @globaltimesnews: China urges the US to stop provocations to avoid unforeseen incidents. The Chinese military is determined to safeguard…
  • The $AUD and its local #ASX 200 stock index have diverged in what may be a sign of market confidence in ebbing US-China trade war and #Brexit risks. Get your market update from @IlyaSpivak here: https://t.co/nuN48hX6d6 https://t.co/7eMZlyYqaM
  • Japan, South Korea still in talks to avoid ending intellectual pact -BBG citing Kyodo
  • Fascinating read. Highly recommend. https://t.co/ZU71iqJzXe
  • The #Euro has stalled after brief recovery against the US Dollar. The dominant price trend bias continues to favor weakness on the horizon. Get your $EURUSD market update from @IlyaSpivak here:https://t.co/ooJMpdE8xq https://t.co/yT5oj0G82s
  • #USDCHF pivot points (daily) – S3: 0.985, S2: 0.9886, S1: 0.9908, R1: 0.9943, R2: 0.9957, R3: 0.9993- https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • RT @lisaabramowicz1: Hedge-fund firms reported the eighth straight month of client redemptions in October, the longest stretch of withdrawa…
  • RT @KyleR_IG: 2 down, 5 to go. Australia's was poor, this is in-line. Europe's likely the most significant now. A meet, or better yet, beat…
  • Japan’s benchmark #Nikkei 225 stock index may be on course break a three-month uptrend, making good on an early warning signal from the $USDJPY exchange rate. Get your market update from https://t.co/jja7S4b74k
Australian Dollar Ticks Up as Chinese Industry Beats Forecasts

Australian Dollar Ticks Up as Chinese Industry Beats Forecasts

2017-06-14 03:44:00
David Cottle, Analyst
Share:

Talking Points

  • The Australian Dollar got a boost from China’s Wednesday data deluge
  • Much came in as expected but the big one, industrial production, had a little more vigor
  • It only bear forecasts by a tick though

Find out how the market feels about Aussie Dollar and all the Asia/Pacific majors with the DailyFX Sentiment Guide

The Australian Dollar gained slightly following the release of stronger-than-expected Chinese industrial data.

Production rose by 6.5% on the year in May, according to official figures. That was (just) better than the 6.4% rise expected and exactly the same as April’s rise. The statistics bureau was modestly upbeat too, suggesting that the data point to continued stabilization of the economy and improving momentum.

Figures released simultaneously showed that retail sales were up exactly as expected, rising 10.7% on-year in May. Again, this was precisely the same as prior-month’s gain. Lastly fixed-asset investment was revealed to have gained 8.6%. That was a couple of ticks below market expectations but still reasonably sturdy.

The AUD/USD pair got a little lift after this Chinese data deluge. The morning’s action has proven once again that the Aussie is slightly more likely to react to Chinese numbers than to local ones. An earlier, gloomy, consumer confidence snapshot barely caused a twitch.

Australian Dollar Ticks Up as Chinese Industry Beats Forecasts

This may be because the Reserve Bank of Australia has placed such emphasis on external factors (such as China’s economic performance) when it comes to setting monetary policy. Nevertheless, Australian futures markets see no increase for record-low Australian interest rates this year.

Market focus is naturally overwhelmingly on the US Federal Reserve and its June monetary policy meeting. That wraps up long after Asia/Pacific markets will have called it quits for Wednesday. Chair Janet Yellen and her Federal Open Market Committee colleagues are widely expected to add another quarter percentage point to US rates. This would further erode the Aussie’s yield advantage over its US cousin.

However, this prospect has been extremely well flagged and doesn’t seem to be disturbing the peace of the RBA, so it will be strange if an as-expected hike causes the Australian Dollar to rise much.

Get live coverage of Australia’s official labor-market data release Thursday at the DailyFX webinars

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter:@DavidCottleFX

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

DISCLOSURES

News & Analysis at your fingertips.