FOREX: AUD, NZD Hampered by Soft China CPI
Jul-17 09:40By: Edward Hardy
- AUD, NZD are the poorest performers across G10 on the back of a softer-than-expected Chinese GDP release, with Q2 growth well below forecast at 6.3% Y/Y vs. Exp. 7.1%. While this was an acceleration from Q1's 4.5%, it has prompted a number of sell-side outfits to trim their growth expectation for this calendar year, with most trimming 0.5ppts to forecast 5.0% annual growth this year.
- As such, AUD/USD has faded off the 0.6895 high to trade lower for a second session and challenge the early Thursday lows of 0.6784. The Friday candle has now formed a bearish candle pattern, signalling exhaustion of the recent uptrend and flagging the risk of lower prices.
- JPY is among the strongest in G10, buoyed by a rollover of the previously bullish theme as equity markets backtrack some of the upper-end of the recent rally.
- With the Fed in media blackout mode, there are few central bank speakers or data releases of note, keeping focus on the bigger prints later this week: US retail sales, Canadian CPI and UK inflation data market the highlights.
