AUD focuses on China

Most risk currencies lost ground to the greenback, including the AUD, which unwound significantly and is now back near the lows from a couple of weeks ago.

China
Source: Bloomberg

Remember, AUD/USD just breached January lows in early October and traded down to $0.8643, its lowest level since January 2010. With global growth concerns and weaker commodity prices a dominant theme, the AUD will certainly be one of the key currencies to watch.

Today we receive China’s September trade balance data and this will give some insight on key commodities traded and volume, along with whether activity in China is picking up. The trade balance, due out at 13.00 AEDT, is expected to pull back to $41 billion (from the previous $49.84 billion reading). A 12% jump in exports and 2% contraction in imports is envisaged.

China’s exports, along with Premier Li’s speech, will be key for risk and emerging markets. Premier Li will be travelling in Russia and could make some stimulus-related comments. For the rest of the week, focus will shift to China’s money supply figures, PPI and CPI data.

AUD/USD
Click to enlarge

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.