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
EUR/USD
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
Wall Street
Bearish
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
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/TnL91f7sl7
  • Human error in the forex market is common and often leads to familiar trading mistakes. These trading mistakes crop up particularly with novice traders on a regular basis. Learn about the top ten trading mistakes and how you can avoid them here: https://t.co/i8E2AXtzF3 https://t.co/cDcjl3Ue09
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/KWOX5wSipe
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/cwSWCpKtaj
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/zu5hMovbz6
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/QMKyTBOKNG
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/aRkGoNvj6D
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9Flsqcxo9 https://t.co/ltVTNO2sjT
  • GBP/USD clears the May low (1.3801) as the Federal Reserve forecasts two rate hikes for 2023. Get your $GBP market update from @DavidJSong here:https://t.co/WdTG2niAKz https://t.co/2j02VyH0wm
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.01% 🇪🇺EUR: -0.36% 🇨🇭CHF: -0.60% 🇨🇦CAD: -0.91% 🇦🇺AUD: -0.96% 🇳🇿NZD: -1.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/HWVSmqaiYF
Australian Dollar Slides As Chinese Industrial, Retail Numbers Both Miss

Australian Dollar Slides As Chinese Industrial, Retail Numbers Both Miss

David Cottle, Analyst

Australian Dollar, Chinese Retail Sales, Industrial Production Data Talking Points:

  • Chinese industrial production rose by 4.8% last month, well below the 6% rise expected
  • Retail sales also came in below estimates
  • Economists have been perhaps a little optimistic about China’s resilience to global deceleration

Join our analysts for live, interactive coverage of all major economic data at the DailyFX Webinars. We’d love to have you along.

The Australian Dollar reverted to its sometime role as the markets’ favorite liquid China proxy on Wednesday and was duly hit, if not for very long, by a triple dose of weak official data out of the world’s second largest economy.

July’s industrial production rose by an annualized 4.8%, well below the 6% expected and June’s 6.3% gain. Retail sales rose 7.6%, below the 8.6% hoped for, while fixed asset investment came in at 5.7%, admittedly only just under the forecast 5.8% gain.

There had been a sense of hope in the market that China was weathering trade storms with the US rather better than might have been expected. These numbers don’t exactly disprove that thesis but do suggest that at the very least forecasters had become a little too optimistic about the country’s economic resilience.

AUDUSD went sharply lower on the data release, but its falls were soon arrested with focus likely more on events in Hong Kong where political unrest and Beijing’s response to it continue to pinion investor attentions during Asia Pacific trading hours.

Australian Dollar Vs US Dollar, 5-Minute Chart

On its daily chart the Australian Dollar remains close to the eleven-year lows plumbed earlier this month. A clear confluence of negatives continues to plague the currency. General risk aversion and worries about global growth create a toxic backdrop for the pro-cyclical Aussie but there are some worrying specifics in the mix too.

The Reserve Bank of New Zealand’s surprise chunky half-percentage-point interest rate cut earlier this month saw investors price in similarly-sized reductions in Australia, when before only a single further reduction was confidently discounted.

Given this it’s no wonder that the Aussie should be under strain, as it clearly is.

Australian Dollar Vs US Dollar, Daily Chart

Any sign that Beijing and Washington are getting closer on trade could see things perk up for Aussie bulls, as could continued strength in Australia’s resilient labor market. The Reserve Bank of Australia is known to be watching metrics connected to that very closely.

However, for as long as the currency is perceived to suffer from such a complete lack of domestic monetary support it will be very hard to get bullish on it for long.

Australian Dollar Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

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

DISCLOSURES