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
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
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
Gold
Bearish
Oil - US Crude
Bullish
Bitcoin
Mixed
More View more
Real Time News
  • RT @Tony_Nyman: MS #FX Trades of the week - Sell $USD/NOK at market for 8.74. Stop 9.20 - Sell $USD/CNH at market for 6.95. Stop 7.21 #Lowe…
  • German Economy Ministry - German economy remains in weak phase - Economic indicators have not yet pointed to a trend reversal - Pronounced recession is not expected $EUR
  • Greed has proven to be a hindrance more than assistance for traders. How does greed lead to #FOMOintrading? Find out from @RichardSnowFX here: https://t.co/aT8TZjlFqP https://t.co/XtDrpjR4yT
  • Crude Oil Prices May Give Back Gains as Brexit Optimism Wanes - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2019/10/14/Crude-Oil-Prices-May-Give-Back-Gaons-as-Brexit-Optimism-Wanes.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #OOTT #crudeoil #Brexit
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/RlubZzBmyN
  • Why trade with Bollinger Bands®? Find out as a day trader, how you can use it to your advantage:https://t.co/dwODDDSsFi @WVenketas https://t.co/lzHvMaeOxU
  • (#ASEAN Fundamental Forecast) US Dollar Outlook on SGD, INR and IDR Amid Trade Talks, China GDP #USD $USDSGD $USDINR - https://www.dailyfx.com/forex/fundamental/article/special_report/2019/10/14/US-Dollar-Outlook-on-SGD-INR-and-IDR-Amid-Trade-Talks-China-GDP.html?CHID=9&QPID=917702 https://t.co/EKyMMEJa00
  • LIVE NOW: Join Currency Analyst @ZabelinDimitri as he previews the upcoming week’s main political themes and discusses their impact on the financial markets. Register here: https://www.dailyfx.com/webinars/146770987?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • China’s CNY Trade Balance (SEP) Actual: $39.65b Est: $34.75b Previous: $34.83b And China’s CNY Trade Balance CNY (SEP) Actual: 275.15b Est: 253.80b Previous: 239.60b
  • LIVE IN 30 MIN: Join Currency Analyst @ZabelinDimitri as he previews the upcoming week’s main political themes and discusses their impact on the financial markets. Register here: https://www.dailyfx.com/webinars/146770987?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
AUDUSD Outlook Positive After Firm Chinese Data

AUDUSD Outlook Positive After Firm Chinese Data

2019-04-17 08:00:00
Martin Essex, MSTA, Analyst and Editor
Share:

AUD price, Chinese data, news and analysis:

  • The latest economic growth, industrial production and retail sales data from China suggest its economy is stabilizing.
  • That has lifted the Australian Dollar, seen as a proxy for China, and a further advance is now possible.

AUD outlook constructive

AUDUSD, which is widely seen in the markets as a proxy for China, has firmed after the latest Chinese economic data and the rally could extend further.

The figures showed GDP in China grew by 6.4% year/year in the first quarter of 2019, unchanged from the previous quarter and just above the 6.3% predicted in a survey of economists. More importantly, industrial production was up a hefty 8.5% year/year in March, well above the forecast 5.9%.

Retail sales data were strong too, showing an increase of 8.7% year/year in March rather than the 8.4% expected. That boosted the AUDUSD price, which continues to rise within an upward-sloping channel on the charts.

AUDUSD Price Chart, Daily Timeframe (February 1 – April 17, 2019)

Latest AUDUSD price chart.

Chart by IG (You can click on it for a larger image)

The AUDUSD price is widely seen as a proxy for China because of Australia’s reliance on exports to the country, which seems to be defying concerns about a further slowdown. However, while the numbers suggest that Beijing’s fiscal stimulus is having a positive impact, it is still too early to forecast sustained growth.

Nonetheless, the technical picture is constructive and further AUDUSD strength is now on the cards as long as future data continue to point to China’s economy steadying and optimism persists about a successful conclusion to the US-China trade talks.

Resources to help you trade the forex markets:

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you:

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

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

DISCLOSURES

News & Analysis at your fingertips.