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AUD falls in reaction to Chinese Q1 GDP data

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AUD/USD opened in Asia at 0.7626. It slid to 0.7596 into the China data releases. There was an initial spike to 0.7635 after China’s GDP data came in within expectations at 7% but this was lower than the previous 7.3% and was the slowest growth since 2009. AUDUSD was sold again due to the data since China is a major trading partner for Australia. A low of 0.7581 was reached in the Asian session.

USD/JPY bounced back up in Asia to recover some of yesterday’s fall from disappointing US retail sales. The pair edged up from 119.34 to 119.73. A key resistance level lies ahead at 120.00. EURJPY did little between 127.08-23 after yesterday’s plunge to a fresh 2-year low of 126.10 .

EUR/USD opened in Asia at 1.0655 after decent USD sales last after weak US retail sales data and lower US yields. USD was bid in Asia, and this saw EURUSD drift down from 1.0658 to 1.0617. Eurozone yields continue to press lower and should remain a negative. The focus is on Fed expectations however, and the recent spate of not too encouraging US data raises concern about the timing of Fed rate hike.

GBP/USD edged down in Asia a la EUR/USD. From 1.4783, it pushed down to 1.4745. EURGBP consolidated between 0.7200-11 after yesterday’s push down to 0.7182.

USD/CHF grinded higher from 0.9726 to 0.9752 on broad USD strength. EURCHF consolidated between 1.0349-61 after yesterday’s rally from 1.0297 to 1.0383.


The post AUD falls in reaction to Chinese Q1 GDP data appeared first on Forex Circles.

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