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15 Apr 2015
AUD/USD bears in control on further Chinese dissapoinments
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7595 and bears are taking the bulls on again post yet further poor turn outs in the Chinese economy.
AUD/USD has made a low of 0.7584 and a high of 0.7636 in the Asia shift and has been a little bit of cat and mouse with data trails opposing one another, but in this case, the Chinese data has overshadowed previous noise and is the next disappointment to come from the worlds second largest economy.
The immediate effect is supply in the Aussie due to the trading relationship between the two economies. The next effect is less clear in respect of how this will effect the market in the medium term, as best will be placed that further stimulus will be pumped in to the Chinese economy to spur growth and this in effect could create a risk on environment, that could be positive for the Aussie on the longer term as liquidity is channeled towards Australian assets.
The price action was an immediate bid due to GDP coming in line with expectations that quickly got met by strong offers from 0.7630 down to aforementioned lows before the Aussie settled around 0.76 the figure as the overall picture and mix of data was generally poor. However, markets are unlikely to be to heavily positioned one way or the other ahead of tomorrows crucial jobs data from Australia and next months RBA meeting.
AUD/USD has made a low of 0.7584 and a high of 0.7636 in the Asia shift and has been a little bit of cat and mouse with data trails opposing one another, but in this case, the Chinese data has overshadowed previous noise and is the next disappointment to come from the worlds second largest economy.
The immediate effect is supply in the Aussie due to the trading relationship between the two economies. The next effect is less clear in respect of how this will effect the market in the medium term, as best will be placed that further stimulus will be pumped in to the Chinese economy to spur growth and this in effect could create a risk on environment, that could be positive for the Aussie on the longer term as liquidity is channeled towards Australian assets.
The price action was an immediate bid due to GDP coming in line with expectations that quickly got met by strong offers from 0.7630 down to aforementioned lows before the Aussie settled around 0.76 the figure as the overall picture and mix of data was generally poor. However, markets are unlikely to be to heavily positioned one way or the other ahead of tomorrows crucial jobs data from Australia and next months RBA meeting.