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.

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
EUR/USD
Bearish
Oil - US Crude
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
Wall Street
Bearish
Gold
Bullish
GBP/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
USD/JPY
Bearish
More View more
Real Time News
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.09% 🇨🇭CHF: -0.02% 🇪🇺EUR: -0.04% 🇳🇿NZD: -0.34% 🇦🇺AUD: -0.35% 🇨🇦CAD: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/YDr8ENytVl
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.16% Wall Street: -0.23% US 500: -0.27% France 40: -0.48% Germany 30: -0.58% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/e9Gr3M5pOC
  • Heads Up:💶 ECB President Lagarde Speech due at 08:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-18
  • Heads Up:💶 Eurogroup Video Conference due at 08:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-18
  • Chinese Foreign Ministry: Noticed Report on US halting Huawei supply Urge US to withdraw wrong decision US Huawei move damaging internet supply chains - BBG
  • Canadian Dollar Outlook: USD/CAD Rebound May Continue Ahead of BoC - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2021/01/18/Canadian-Dollar-Outlook-USDCAD-Rebound-May-Continue-Ahead-of-BoC.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $CAD $USDCAD https://t.co/xfAI9M7wi0
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/cP7ZhDHoNA
  • Heads Up:🇨🇳 FDI (YTD) YoY (DEC) due at 07:00 GMT (15min) Previous: 6.3% https://www.dailyfx.com/economic-calendar#2021-01-18
  • Wall Street Futures Update: Dow Jones (-0.133%) S&P 500 (-0.193%) Nasdaq 100 (-0.184%) [delayed] -BBG
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/dPj0seqzQS
Australian Dollar May Recover Losses on Chinese First Quarter GDP

Australian Dollar May Recover Losses on Chinese First Quarter GDP

2018-04-17 02:30:00
Daniel Dubrovsky, Analyst

Talking Points:

  • Aussie Dollar declines on in-line Chinese GDP, softer industrial production
  • The RBA seems unlikely to act on the data, it’s in no rush to raise rates as is
  • AUD/USD has pushed above a bullish reversal pattern, it may keep climbing

Trade all the major global economic data live and interactive at the DailyFX Webinars. We’d love to have you along.

The Australian Dollar was cautiously lower after mostly in-line Chinese GDP data, but AUD/USD may be at risk of a more pronounced move higher. In the first quarter, China’s economy grew 6.8% y/y as expected, the same pace as in the fourth quarter of last year. Quarter-over-quarter, the outcome was worse-than-expected at +1.4% versus +1.5%.

What was more disappointing, and probably the cause of Aussie Dollar weakness, were the soft industrial production statistics. In March, it rose only 6.0% y/y versus 6.3% expected. That was the weakest outcome since August. Meanwhile, retail sales data beating estimates across the board failed to inspire much confidence and did not counter the negativity from the industrial production figures.

With China being Australia’s largest trading partner, data out of the world’s second largest economy can sometimes have knock-on effects on the latter. However, the Reserve Bank of Australia is standing its ground on monetary policy for now. The central bank has hinted that it is in no rush to raise rates. In fact, before the Chinese GDP figures crossed the wires, we had minutes from the RBA’s April rate decision. The central bank reiterated its usual tone, adding that current tariffs are unlikely to impact on global trade.

With that in mind, the sentiment-sensitive Aussie Dollar will probably be more interested in risk trends in the near-term. Ahead, US President Donald Trump will have a meeting with Japan’s Prime Minister Shinzo Abe about matters such as North Korea and tariffs. Then, on early Thursday we will get Australia’s March employment report. Both of these events may inspire volatility in the currency.

Australian Dollar May Recover Losses on Chinese First Quarter GDP

On a daily chart, AUD/USD has pushed above a falling wedge bullish reversal pattern as expected, hinting that the pair may continue heading higher in the near-term. Form here, immediate resistance stands as the 50% midpoint of the Fibonacci retracement at 0.7818. A push above that exposes the 38.2% level at 0.7893. Meanwhile, immediate resistance is the 61.8% retracement at 0.7743 which is also closely aligned with the upper line of the wedge.

Australian Dollar May Recover Losses on Chinese First Quarter GDP

AUD/USD Trading Resources:

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

To receive Daniel's analysis directly via email, please SIGN UP HERE

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

DISCLOSURES