The Australian dollar found solace on China’s GDP for the first quarter and garnered the attention of investors as everyone kept a close eye on the geopolitical tensions on the Korean peninsula. The Chinese’s first quarter report provided a hefty boost for the Aussie in the Asian market.
Opening the market week just after the Easter holiday, the AUD/USD traded at an estimated figure of 0.7580, a 0.03% increase just before the weekend although, the Australian market remained still close this Easter Monday. The second largest economy in the world, China, posted an unexpected growth that later transitioned to a better Australian dollar.
China showed an increase of 1.6% on a quarter-in-quarter and a hearty 6.8% increase on a year-on-year outlook. Although the unemployment rate in Aussie remained stagnant at 5.9%along with the forecasts, according to Governor Philip Lowe of the Reserve Bank of Australia the main concern of the country looks to be the distant thorn and the big area of concern.
AUSD as the Proxy Asset
The GDP of China has reported unbelievable figures; the country increased a total of 6.9% in their first quarter, making this the best since the third quarter of 2015. The Aussie is hailed to be the proxy asset every time the Chinese economic surges because the East Asian giant is Australia’s top export partner.
Beyond the export partner factor, the Aussie also capitalized on the development the country makes and then having a fresh business cycle. The geopolitical turmoil also poses a big engagement as investors shy away from currencies that are more risky with these crises.
China reported unexpected retail sales and industrial production, the receipts added 10.9% on-year in March. The factory output was also leaning on a brighter side as it grew by 7.6% over the same period last year; this is the fastest in the country in 2 years.
USD Inches a Bit Higher Against Yen
On the other hand, USD/JPY switch places as the dollar gains 108.69 at 0.04%. The US dollar index which measures the dollar strengths among a basket of major currencies was trading at around 100.49. The greenback is coming up on the prolonged strength it garnered last Thursday, as the market closes in the event of Good Friday.
The major boost it had last week was from President Trump’s comment on the currency being boosted because of him. According to
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