Market News & Analysis

Turbulent trading for Aussie after China rebound

Apr 18, 2019 | Market Update

High-impact economic news:

11:30 AUD Employment Change
11:30 AUD Unemployment Rate
17:15 EUR French Flash Services PMI
17:15 EUR French Flash Manufacturing PMI
17:30 EUR German Flash Manufacturing PMI
17:30 EUR German Flash Services PMI
18:30 GBP Retail Sales m/m
22:30 CAD Core Retail Sales m/m
22:30 USD Retail Sales m/m

It was a turbulent trading session for the Aussie and the Kiwi, after two very different economic reports. The start of the Asian session saw the release of New Zealand’s quarterly CPI data and it was anything but impressive. Inflation slowed to 0.1% in the March quarter for New Zealand, compared to a forecast of 0.3%. The weaker-than-expected read resulted in the Kiwi plunging to multi-week lows. The NZD/USD pair reached an intraday low of 0.6665 before closing the session at 0.6726, reversing gains from the previous three sessions. Against the Euro, the NZD closed the session 125 pips lower after initially plunging close to 250 pips. The extraordinary rebound was propelled by improved growth in China.

Defying market expectations, China’s economy grew 6.4% in the first quarter, in line with the previous quarter and compared to a forecast of 6.3%. Alongside the release of the GDP report was stronger-than-expected industrial production numbers. The total value of output produced by manufacturers, mines, and utilities in China rose 8.5% in March, against a forecast of 5.6%.

Not only did the Kiwi claw back losses on the Chinese data, but the Aussie edged higher too. Immediately after the release, the Aussie spiked above 72 US cents. But the rally wasn’t sustainable, with sellers forcing the AUD/USD to close less than 10 pips higher at 0.7177. The marginally increase, however, was enough to put the Aussie at a 7-week high against the greenback. The AUD/NZD saw the biggest gains, with the Aussie closing at its highest level since November 26.

Aside from the Kiwi, Gold was the biggest loser during Wednesday’s session, closing at its lowest level since December 27. The commodity fell for a fifth consecutive session, down US$2.56 to US$1,273.92 per ounce.

Traders are in for a big session tonight ahead of a raft of economic data, including retail sales numbers from the United States, Canada and the United Kingdom. France and Germany will also release manufacturing and services data, before the Good Friday public holiday.

Good trading from EightCap

* The information provided here has been prepared by EightCap’s team of analysts. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and do not reflect the opinions of EightCap.

In addition to the disclaimer on our website, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. EightCap accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

Please note that past performance is not a guarantee of or prediction of future performance. This communication must not be reproduced or further distributed without prior permission.







Level 6, 360 Collins Street
Melbourne, VIC
3000 Australia

Risk Warning: Margin trading involves a high level of risk, and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with EightCap, and seek independent advice if necessary. Forex and CFDs are highly leveraged products which mean both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford losses without adversely affecting your lifestyle (including the risk of losing substantially more than your initial investment). A Product Disclosure Statement (PDS) and a Financial Services Guide (FSG) for our products are available to download from our Legal Documentation page. You must assess and consider them carefully before making any decision about using our products or services.

EightCap is a registered business name of EightCap Pty Ltd (ABN 73 139 495 944). We are regulated by the Australian Securities & Investments Commission (ASIC) - our AFSL number is 391441. This licence authorises us to provide financial services to people in Australia.

The information on this website is of a general nature only and is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. EightCap is not a financial adviser, and does not issue advice, recommendations, or opinion in relation to acquiring, holding or disposing of a margined transaction. We provide general advice only and accordingly you should consider how appropriate the advice (if any) is to your objectives, financial situation and needs before acting on the advice.