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AUD/USD – Aussie Shrugs Off Positive Chinese GDP

AUD/USD is listless on Tuesday, as the pair trades just below the 0.82 line early in the North American session. On the release front, Australia will release Westpac Consumer Sentiment later in the day. It’s quiet in the US, with just one indicator on the schedule – NAHB Housing Market Index.

Chinese GDP came in at 7.3% for Q4, edging above the estimate of 7.2%. This eased worries about a slowdown in China, the world’s second largest economy, as GDP kept up with its pace in Q3. The Australian dollar is sensitive to key Chinese data, as the Asian giant is Australia’s number one trading partner.

On Monday, the Aussie shrugged off an excellent performance from New Motor Vehicle Sales. The indicator jumped an impressive 3.0%, its strongest gain in more than 3 years. This points to stronger consumer spending, which is critical for the economy. Meanwhile, MI Inflation Gauge continued its downward trend, falling to a flat 0.0%. The monthly index is used to help track CPI, which is released every quarter.

It’s been less than a week since the SNB stunned the markets by suddenly removing the cap with the euro. This resulted in the euro recording sharp losses against the Swiss franc and the US dollar. However, the markets have had to quickly change focus, as there is growing anticipation that the ECB will announce a QE package on Thursday, when the ECB meets for a crucial policy meeting. The Eurozone has been plagued by deflation and weak growth, and the SNB shocker only reinforces the belief that the ECB will finally make a move. Even if QE has been priced in, there’s no way to know the size of such a scheme, so traders could be in for plenty of volatility from EUR/USD later in the week.

AUD/USD for Tuesday, January 20, 2015

AUD/USD January 20 at 15:20 GMT

AUD/USD 0.8175 H: 0.8218 L: 0.8160


AUD/USD Technical

S3 S2 S1 R1 R2 R3
0.7904 0.8081 0.8150 0.8214 0.8315 0.8456


Further levels in both directions:


OANDA’s Open Positions Ratio

AUD/USD ratio is pointing to gains in short positions on Tuesday. This is consistent with the pair’s movement, as the Aussie has posted small losses. The ratio has a majority of long positions, indicative of trader bias towards AUD/USD breaking above range.

AUD/USD Fundamentals

*Key releases are highlighted in bold

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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