Data released overnight shows that the Chinese economy grew by 6.7% Y/Y for the 3rd quarter. The actual figure came in line with the consensus indications. Y/Y industrial production for September was slightly softer than previous and expected readings and came out at 6.1%. Y/Y retail sales however surprised to the upside with the actual figure slightly above previoius and expected figures.
Major equity indices during this morning’s early Asian session reacted positively to the numbers out of the world’s second largest economy. The Aussie, widely considered a proxy of the Chinese economy given its large trading ties, initially weakened but has now pared back those losses and is so far higher for the day when seen against the USD. AUDUSD is at 0.7668 at the time of writing.
Yesterday was an eventful day for the US Dollar, the US Dollar index (DXY) closed virtually were it had opened. This morning we see some weakness creep in as the DXY is trading 97.81 levels. The US Dollar has been on rally practically for the past two months.
Ahead of us, in today’s economic docket the next high impact data listed is coming out of Canada which is due for a rate decision, expectation are pointing towards an unchanged 0.50% policy rate. CADUSD is currently 0.7630 looking onto the next upside resistance of 0.7650 poised by the 50-day moving average.
