- AUD/USD looks for further recovery to approach 0.6400 following upbeat data from China.
- US President Biden claims the Pentagon has shown evidence that Israel did not bomb the Gaza hospital.
- US Dollar consolidates around 106.35 as investors focus on Fed’s Powell speech.
The AUD/USD pair remains on track to regain the resistance of the 0.6400 round level in the early stages of the New York session. The AUD found buyer interest as China’s upbeat Gross Domestic Product (GDP) for the July-September quarter eased fears of a slowdown in the Asian economy.
Being an indirect indicator of China’s economic prospects, the Australian dollar is strengthening against the US dollar. China’s National Bureau of Statistics reported that the growth rate was 1.3% in the third quarter of 2023, significantly higher than expectations of 1.0% and GDP growth of 0.5% in the April-June quarter. Annual GDP, at 4.9%, beat expectations of 4.4%, but was still lower than the previous release of 6.3%.
Apart from the GDP data, industrial production increased at a constant rate of 4.5%. Annual retail sales grew at a good pace of 5.5% in September, compared to expectations of 4.9% and August’s reading of 4.6%.
Meanwhile, the S&P 500 opened on a negative note amid caution over US President Joe Biden’s visit to Israel to discuss the ground assault on the Gaza Strip. Biden claimed that the Pentagon has shown evidence that Israel did not bomb the Gaza hospital.
The Dollar Index (DXY) consolidates around 106.35 as investors focus on Federal Reserve (Fed) Chairman Jerome Powell’s speech scheduled for Thursday. Focus will be on interest rate guidance as other Fed policymakers have been supporting keeping interest rates unchanged at 5.25-5.50% due to rising US bond yields to long term. The 10-year US Treasury yield rose to 4.85%.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
