Aussie boosted by China

The Australian dollar is just above the $0.965 mark after China reported strong growth figures.

Overnight China reported third-quarter growth of 7.8%, in line with expectations. Industrial production and retail sales increased by 10.2% and 13.3% respectively on the year. These signs that the country is still expanding have boosted the Australian dollar, as a stronger Chinese economy will ensure demand for Australian minerals.

Conversely, Glenn Stevens of the Reserve Bank of Australia (RBA) has stated that a weaker dollar would be good for the Australian economy as it would make exports more competitive. Mr Stevens would like to rebalance the economy and make it less dependent on the mining sector. The RBA base rate is 2.5%. Goldman Sachs no longer feels there will be a rate cut in November, but instead they anticipate the next in March 2014.

Today is a quiet day in terms of economic data. Daniel Tarullo of the Federal Reserve is due to make an announcement at 5.30pm (London time). If Mr Tarullo suggests that the stimulus package should remain in place until next year, we could see the dollar head towards the $0.97 level.

Spot FX AUD/USD chart

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.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.