Spotlight on AUDUSD, USDJPY, China and Asian Stocks

In the spotlight today we have AUDUSD,USDJPY, China and Asian stocks reacting to the world’s second largest economy publicising key data on its 3rd quarter GDP and industrial output.

AUDUSD hit a high of 0.78579 in yesterday’s trading, closing at 0.78424. The pair went up by roughly 0.66%, with the Aussie gaining momentum after jobs data release in Asia and the Chinese GDP and industrial output figures fueled the sentiment of continued demand from one of the country’s main export trade partners.

USDJPY showed a positive move, going up by 0.05% and heading toward 112.460 and the potential to hit the 113.00 handle.

Following Draghi’s speech, EURUSD traded in the area of 1.7812, gaining around 0.13%.

The US dollar index, which measures the American currency’s strength against a basket of six other major traded currencies, dropped by 0.05% to 93.25. The greenback hit breakeven after data pointed to ongoing weakness in the housing sector. However, the good news is that gains in the US treasury yields added support to the USD, thus capping any losses.

China published its 3rd quarter GDP report. The figures confirmed economists’ predictions, indicating overall gains of 1.7% on a quarter basis and a 6.8% growth in the industrial output, exceeding the 6.2% rise expected.

Japan’s trade balance showed a surplus of as much as ¥670 billion compared to the expected excess of ¥560 billion envisaged in September.

Japanese presidential elections are only a couple of days away. On Sunday, 22nd October 2017, the Japanese will elect their new president, which in turn, might trigger some volatility in the market.

Australia’s job market was flooded by 19,800 workers compared to the predicted figure of 15,000 job changers. This has helped unemployment rate sink by 5.5% from 5.6%.

Asian stocks shed gains on Thursday in reaction to economic growth slowing down in China. Tokyo Reuters notes that this has caused a pull-back from 10-year highs.