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Forex - Aussie treads water ahead of China Q3 GDP figures, other data

Published 10/18/2015, 07:48 PM
Updated 10/18/2015, 07:50 PM
Aussie flat ahead of China GDP
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Investing.com - The Aussie was flat in early Asia on Monday as investors awaited the latest data on China's economic growth.

AUD/USD traded at 0.7265, down 0.01%, while USD/JPY changed hands at 119.34, down 0.09%.

In China comes fixed asset investment with a gain of 10.8% seen year-on-year in September as well as third quarter GDP, seen up 1.7% quarter-on-quarter and an annual pace of 6.8%.

As well, industrial output is expected to show a 6.0% gain year-on-year in September, while retail sales are seen to have gained 10.8% in the same period.

The data will be closely watched amid fears that a China-led slowdown in global growth could prompt the Fed to delay hiking rates for longer.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.06% to 94.71.

Later in the day, Fed Governor Lael Brainard is to speak at an event in Chicago.

Investors are also focused on the outcome of Thursday’s ECB meeting.

Last week, the dollar was broadly higher on Friday and the euro weakened amid expectations that the Federal Reserve may still raise interest rates this year while the European Central Bank could scale up its quantitative easing program.

Data on Friday confirmed that the rate of inflation in the euro area turned negative in September for the first time since the ECB launched its trillion euro asset purchase program in March, with the consumer price index down 0.1% on a year-over-year basis.

The greenback’s gains were held in check following the release of mixed U.S. economic reports.

The University of Michigan’s survey of consumer sentiment rebounded in October, following four months of declines.

The preliminary reading of the UoM consumer sentiment index came in at 92.1 compared to forecasts of 89 and up from 87.2 in September.

But another report showed that U.S. industrial production declined 0.2% in September, pressured lower by weakness in the oil and gas sector.

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