GDP In China Up 6.4% In Q3
ORBEX | Jan 21, 2019 02:54AM ET
The U.S. dollar posted strong gains on the day on news that China had proposed a 6-year increase of U.S. goods imports as part of the trade talks. Economic data from the U.S. was relatively quiet. The industrial production figures showed a 0.3% increase on the month in December. This beat estimates of a 0.2% increase.
The U.K.'s retail sales report showed a 0.9% decline in sales which was slightly worse than expected. Economists forecast that retail sales would fall 0.8%. The data for November showed a 1.3% increase.
Canada's inflation surprised to the upside. Headline consumer prices accelerated from 1.7% to 2.0% in December. On a month over month basis, consumer prices fell 0.1% compared to estimates forecasting a 0.4% decline.
The day ahead will see the markets reacting to the data from China. China's GDP increased by 6.4% during the third quarter. Economists forecast that GDP would rise at a slower pace of 6.4% and the actual figures matched the estimates.
Fixed asset investment and industrial production figures rose 5.9% and 5.7% respectively during the period.
The data from the Eurozone will see the German producer prices index data. Headline PPI is forecast to fall by 0.1% on the month. The U.S. markets are not open on account of Martin Luther King Day.
h3 EUR/USD Intraday Analysis/h3EUR/USD (1.1374): The EUR/USD currency pair extended declines after failing to hold the dynamic support of the minor rising trend line. The drops could now signal further losses as the common currency is likely to test the 1.1272 level to the downside. The bias remains flat for the moment, but if the lows formed at 1.1272 fails to hold the declines, we could expect to see the bearish trend likely to resume.h3 AUD/USD Intraday Analysis/h3
AUD/USD (0.7166): The AUD/USD currency pair closed bearish following the failure to post any significant gains above the 0.7191 handle. The close could trigger a modest correction to the downside with the lower support at 0.7022 likely to come into focus. Alternately, there is a scope that price could maintain its consolidation at the current levels with the risk of moving back above 0.7191 level.
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XAU/USD (1281.19): Gold prices broke down to the downside as price action closed near the 1280 support. With the price action moving to the downside, gold prices could see some rebound at the 1280 handle. As long as the support holds, prices remain trading sideways. A close below 1280 could trigger further losses opening the way for the price to test the 1250 support.
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