Forex News: Australian Dollar Rises After China GDP Data

Australian Dollar Rises After China GDP Data

(RTTNews) - The Australian dollar strengthened against other major currencies in the Asian session on Friday, after China's economy grew at the slowest pace in more than a year in the third quarter.

Data from the National Bureau of Statistics showed that China's gross domestic product expanded 4.6 percent on a yearly basis in the third quarter. This was the weakest growth since the first quarter of 2023.

The rate matched expectations but came in slightly weaker than the 4.7 percent growth posted in the second quarter.

Quarter-on-quarter, GDP climbed 0.9 percent, which was slower than the expected growth of 1.0 percent.

In January to September period, the economy logged an annual growth of 4.8 percent compared to the government's full year target of around 5 percent.

In September, industrial production surged 5.4 percent after rising 4.5 percent a month ago. This was also better than economists' forecast of 4.6 percent.

Retail sales growth improved to 3.2 percent from 2.1 percent in the previous month. Sales were forecast to gain 2.5 percent.

In the three months to September, fixed asset investment growth came in at 3.4 percent, the same as in preceding period.

The property market continued to be the biggest drag on growth. Property investment contracted 10.1 percent from a year ago.

The unemployment rate fell to 5.1 percent in September, while it was forecast to remain unchanged at 5.3 percent.

Investors focus on a rate cut by the European Central Bank and expectations of interest rate cuts by the U.S. Fed and the Bank of Canada.

Thursday, the aussie traded higher against its major counterparts after the release of a strong Australian employment report in September.

In the Asian trading today, the Australian dollar rose to nearly a 2-week high of 1.6134 against the euro, from yesterday's closing value of 1.6173. The aussie may test resistance near the 1.59 region.

Against the U.S. dollar and the yen, the aussie advanced to 3-day highs of 0.6719 and 100.72 from Thursday's closing quotes of 0.6696 and 100.57, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.59 against the euro, 0.68 against the greenback and 102.00 against the yen.

Against the New Zealand and the Canadian dollars, the aussie climbed to a 4-day high of 1.1067 and a 3-day high of 0.9262 from yesterday's closing quotes of 1.1050 and 0.9236, respectively. The next possible upside target for the aussie is seen around 1.11 against the kiwi and 0.94 against the loonie.

Looking ahead, Eurozone currency account data for August is due to be released at 4:00 am Et in the European session.

In the New York session, U.S. building permits for September, housing starts for September and U.S. Baker Hughes oil rig count data are slated for release.

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