Australian Dollar, AUD / USD, Chinese Economic Data, Japanese GDP – Talking Points
- Aussie dollar is in the limelight with Chinese economic data available to boost trade in APAC
- Japan’s Q3 GDP crossed the wire at -3.0% QoQ, missing analysts’ expectations of -0.7%
- AUD / USD appears to be moving higher after a bullish engulfing candle pattern forms
Forecast for Asia-Pacific on Monday
Australian dollar is in focus to start the week, with several economic data coming from China. Markets have been coming in for a mixed week, the safe-haven US dollar gained against most of its peers, while the US equity markets declined as Treasury yields rose. risk-sensitive AUD / USD pair fell nearly 1% last week, with most of the weakness coming after a heat wave. inflation (CPI) print from the United States.
Rising prices in the world economy is a central problem faced by investors trying to assess the impacts on economic activity and central bank policy in the coming months. Japan will report October inflation data later this week. This morning, the island nation’s third-quarter gross domestic product data crossed the wire. GDP growth in the third quarter dropped to –3.0% q / q, once the consensus forecast was gone, it was -0.7%.
New Zealand Service Performance Index (BNZ) crossed this morning at 44.6 for October. This is a decrease from the figure of 46.5 in September revised downward. 1.9 point drop is overwhelming, but the upcoming Christmas season could provide a favorable wind for the index in the coming months.
Incoming economic data from China, to be released in the next few hours, is likely to dictate market sentiment, with investments in fixed assets, manufacturing, retail and unemployment crossing the lines. Retail sales and industrial production data may attract more attention, with analyst expectations at 3.7% y / y and 3.0% y / y respectively. se forecasts are lower than the previous month’s reading. A poor result could weigh on the Australian dollar.
AUD / USD technical forecast
AUD / USD could rally after a bullish engulfing candlestick pattern formed late last week on the daily chart. nsy high profile signal – occurring at the bottom of a downtrend – suggests that there may be an upside reversal. If prices go up, the 50-day simple moving average (SMA) is a likely resistance point.
AUD / USD daily chart
Read also S&P 500 reaches the highest level of the day
Chart created with TradingView
– Written by Thomas Westwater, Analyst at DailyFX.com
Contact Thomas, use the comment section below or @FxWestwater at