China GDP overview
Today at 02:00 GMT sees the latest round of Chinese GDP figures, alongside annualized Retail Sales for September as well as Industrial Production. Retail Sales are seen holding steady at 9% with Industrial Production for the year into September coming in at 6.0% (last 6.1%), but the critical number for today will be China's quarterly Gross Domestic Product showing, forecast to come in at 1.6% (last 1.8%) for 2018's third quarter, while the annualized number is forecast at 6.6% (last 6.7%) as broader markets brace for a missed reading on China growth as tariffs and a still-brewing trade war with the US expected to begin taking larger chunks out of China's domestic economy.
How could it affect the AUD/USD?
The Aussie is already primed for an anticipated decline, leaning into the bearish side just south of the 0.7100 key barrier and poking holes into 0.7085 through Friday's early Asian market session, and as FXStreet's own Valeria Bednarik noted, the Aussie-Dollar pairing is ready for a short-side call from China's GDP: "Australia has no data scheduled for this Friday, but China will release Q3 GDP figures, with the economy expected to have grown 1.6% in the three months to September, and the YoY reading foreseen at 6.6%. China will also release September Retail Sales and Industrial Production data. Worse-than-expected figures will favor an AUD/USD approach to yearly lows at 0.7040.
Technically, the short-term picture supports such decline, as in the 4 hours chart, the pair trades back below the 20 and 100 SMA, while technical indicators re-entered negative territory and stand at fresh daily lows. Furthermore, the pair has broken below the 38.2% retracement of the latest daily slump after flirting with the 61.8% retracement of the same decline late Wednesday. The next Fibonacci support comes at 0.7085, the only obstacle ahead of the yearly low."
Support levels: 0.7085 0.7040 0.7000
Resistance levels: 0.7120 0.7160 0.7200
Key notes
AUD/USD analysis: to retest yearly lows on poor Chinese data
Australian dollar is weak on risk aversion
About the China GDP
The Gross Domestic Product (GDP) released by the National Bureau of Statistics of China studies the gross value of all goods and services produced by China. The indicator presents the pace at which the Chinese economy is growing or decreasing. As the Chinese economy has influence on the global economy, this economic event would have an impact on the Forex market. Generally speaking, a high reading is seen as positive (or bullish) for the CNY, while a low reading is seen as negative ( or Bearish).
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