Global Themes

AUD

Aussie hits six-week lows as China data slows; Fed key.

The AUDUSD fell to the lowest level since 1 November on Friday after Chinese data sharply missed expectations.

Chinese industrial production numbers fell from 5.9% to 5.4% in November while retail sales dropped from 8.6% to 8.1%.

The poor data was further evidence of a potential slowdown in Chinese economic activity.

The news hit global sentiment with the US’s Dow Jones index ending at the lowest level since May 2018.

Lower

The AUDUSD fell 0.7% as it was caught in the market-wide selling.

The Aussie was lower in most other markets with the largest losses versus the traditional safe-haven currencies like the Japanese yen.

Fed ahead

Locally, the focus is on the Coalition government’s mid-year economic and fiscal outlook to be released this morning.

Later in the week, the Reserve Bank of Australia releases the minutes from its most recent meeting while local job numbers are due on Thursday.

From overseas, the US Federal Reserve meeting, due on Thursday, is clearly the major event for the week.

We’re hosting a special webinar at 1.00pm tomorrow (AEDT) to look at the potential impact of this week’s Fed meeting and the likely factors that will drive FX markets in 2019. You can register via the “Are You Ready to Navigate 2019?” link above.

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