AUD impacted by Chinese GDP
Christophe Chevalier October 19, 2020 5:15 PM
Q3 Chinese GDP was released at +2.7% on quarter, well below +3.3% expected.
This morning, Q3 Chinese GDP was released at +2.7% on quarter, well below +3.3% expected. On a yearly basis, GDP was released at +4.9%, +5.1% expected. As the Australian economy is closely linked to China, AUD is negatively impacted by any Chinese underperformance.
From a technical point of view, on a daily chart, AUD/USD is capped by a declining trend line and stands below its 50-day moving average (in blue). Readers may therefore consider the potential for further weakness below horizontal resistance at 0.7240. The nearest threshold would be set at horizontal support at 0.6920 and a second one would be set at January bottom at 0.6800 in extension.
Source: TradingView, GAIN Capital
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