Home Forex Analysis And Forecasts Aussie Dollar Edges Higher on China GDP, Yen May Rise on US...

Aussie Dollar Edges Higher on China GDP, Yen May Rise on US Data

The Australian Dollar edged higher after China’s third-quarter GDP data registered modestly better than expected. The Yen may rise as US news-flow fuels risk aversion.

Talking Points:

Aussie Dollar Edges Higher on Modestly Better Than Expected Chinese GDP

US Dollar, Yen May Rise if Upbeat Home Sales Data Fuels Fed Rates Outlook

PlaceEconomic Releases Directly on Your Charts with the DailyFX News App

The Australian Dollar narrowly outperformed in overnight trade, rising as much as 0.3 percent on average against its leading counterparts, following a narrowly better-than-expected Chinese GDP report. Output grew at a year-on-year rate of 7.3 percent compared with economists’ expectations of 7.2 percent. The outcome still amounted to the lowest reading since the post-crisis trough in the first quarter of 2009, painting a picture that is hardly encouraging as markets fret about slowing global performance.

A quiet economic calendar in European trading hours is likely to see traders looking ahead to US news-flow, where September’s Existing Home Sales data is in focus. A print at 5.10 million transactions is expected, marking a 1 percent increase from the prior month. US data outcomes have cautiously improved relative to expectations in recent weeks, which may suggest analysts are underestimating the vigor of the North American behemoth and opening the door for an upside surprise.

Such an outcome may help rebuild Fed rate hike expectations, boosting the US Dollar. Renewed bets on the relatively sooner onset of Fed tightening against a backdrop of swelling global slowdown fears may likewise undermine risk appetite amid fears that US growth will be insufficient to offset downturns in the Eurozone and China. That might put risk-geared currencies under pressure while boosting safety-linked alternatives like the Japanese Yen.

Critical Levels CCY                                                                                        Supp 3  Supp 2Supp 1Pivot Point        Res 1                                                                                                                     Res 2    Res 3

EURUSD                                                                                                        1.2611 1.2697             1.2749                                                                                                                        1.2783 1.2835             1.2869                                                                                                                        1.2955

GBPUSD                                                                                                        1.5943 1.6042             1.6104                                                                                                                        1.6141 1.6203             1.6240                                                                                                                        1.6339

Published On Tue, Oct 21 2014, 06:27 GMT

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments