Australian Dollar Extends Rally
October 18 2019 - 3:23AM
RTTF2
The Australian dollar continued to be higher against its major
counterparts in the European session on Friday, as upbeat Chinese
industrial production figures offset concerns over weak GDP
data.
Data from the National Bureau of Statistics showed that Chinese
industrial production advanced 5.8 percent annually in September
after rising 4.4 percent in August. Output was expected to climb
4.9 percent.
Annual growth in retail sales increased to 7.8 percent, in line
with expectations.
Nonetheless, GDP grew 6 percent year-on-year in the third
quarter after rising 6.2 percent in the second quarter, Growth was
forecast to slow marginally to 6.1 percent.
Underlying sentiment was subdued amid doubts about the merits of
Boris Johnson's Brexit deal and about the likelihood of the deal
getting through the British parliament.
Speaking to a forum at the International Monetary Fund's annual
meeting in Washington, Reserve Bank of Australia Governor Philip
Lowe said negative interest rates are extraordinarily unlikely.
"I'm not going to speculate on negative interest rates or
quantitative easing in Australia, other than to say negative
interest rates are extraordinarily unlikely in my country."
The currency has been trading modestly higher against its most
major counterparts in the Asian session.
The aussie strengthened to more than a 4-week high of 0.6842
against the greenback from Thursday's closing value of 0.6824. The
currency may possibly challenge resistance around the 0.71
level.
The aussie rose to 74.35 against the yen, from a low of 74.07
hit at 7:45 pm ET. The aussie is seen locating resistance around
the 79.00 level.
Japan's government lowered its economic assessment as exports
are expected to remain weak for a longer period.
The cabinet office repeated that the economy is recovering at a
moderate pace but said the "weakness lasting longer mainly in
exports." In September, the report said the weakness is continuing
mainly in exports.
The aussie edged higher to 1.6265 against the euro, following a
decline to 1.6307 at 7:45 pm ET. If the aussie rallies further, it
is likely to test resistance around the 1.60 mark.
The Australian currency was trading higher at 0.8986 against the
loonie, up from Thursday's closing value of 0.8964. On the upside,
0.92 is possibly seen as its next resistance level.
The aussie rebounded to 1.0741 against the kiwi, from a 2-day
low of 1.0716 seen at 12:15 am ET. The next possible resistance for
the aussie is seen around the 1.08 level.
Looking ahead, the U.S. leading index for September is scheduled
for release in the New York session.
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