At Extreme Investor Network, we understand the importance of keeping an eye on economic data from China when it comes to trading the Aussie dollar. With Australia’s trade-to-GDP ratio exceeding 50% and a significant portion of Australian exports going to China, any changes in demand from China can have a direct impact on the Australian economy and subsequently, the RBA rate path and Aussie dollar demand.
In addition to China’s GDP data, other crucial indicators like unemployment, retail sales, and industrial production can provide insight into the momentum of China’s economy as we head into Q4. Positive trends in these areas could help offset the impact of weaker Q3 growth on the Aussie dollar.
However, should we see weaker-than-expected data, we might see the AUD/USD pair slide towards $0.66500. Conversely, better-than-expected figures could propel the pair towards $0.67500.
Taking a closer look at the Australian Dollar daily chart, despite Thursday’s rally, the AUD/USD is still trading below $0.67. Moving forward, FOMC member speeches will likely take the spotlight in the US session, potentially overshadowing US housing sector data.
The reaction from the Fed to the robust US retail sales and labor market data could significantly influence the trends of the AUD/USD pair. Hawkish comments could drive the pair towards the key support level at $0.66500, while speculations of rate cuts in November and December might push it towards $0.67500, a crucial resistance level. Breaking above the $0.67 mark will be crucial for sustaining upward momentum in the pair.
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