AUD/USD Fundamental Analysis October 22, 2014 Forecast

Analysis and Recommendation:

The AUD/USD gained 20 points to trade at 0.8804 after the release of Chinese data and RBA minutes.  Gross domestic product rose 7.3 percent in the July-September period from a year earlier, the statistics bureau said today in Beijing. While that exceeded the 7.2 percent median estimate in a Bloomberg News survey of analysts, it was also the slowest expansion since the first quarter of 2009.

China’s leaders have relaxed home-purchase controls and the central bank has pumped liquidity to lenders as they seek to limit a property-induced slowdown. The government has signaled it will tolerate a weaker expansion pace, leaving China headed for the slowest full-year growth since 1990, based on forecasts by analysts Bloomberg surveyed.

The Shanghai Composite erased earlier losses to enter positive territory and the Australian dollar gained 0.3 percent against the greenback, the best level since Thursday’s high of 0.8830. The Australian dollar, often seen as a proxy of China’s growth prospects given Australia’s large trade exposure to the Asian giant, jumped a quarter of a U.S. cent after the Chinese growth data.

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Today’s economic releases actual vs. forecast:

 

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