CHINA GDP KICKS OFF AN ACTIVE TRADE SESSION
High-profile Chinese data have set the tone for Thursday’s session. British retail sales, a Catalan deadline and a US manufacturing survey are also scheduled to make headlines throughout the day.
China’s National Statistics Bureau said third-quarter GDP accelerated 6.8% year-over-year, matching forecasts. That followed a faster than expected gain of 6.9% in Q2.
China also said retail sales rose 10.3% year-over-year. Industrial production climbed a faster than expected 6.6%, official data showed.
The Chinese economy is the world’s second largest. What happens there is important to any investor with a stake in global trade, emerging markets and commodities.
Looking ahead to the rest of the day, Switzerland will release its latest trade figures at 06:00 GMT. Two hours later, Catalan authorities must confirm whether they have declared Independence or not following the referendum result.
UK retail sales will make headlines at 08:30 GMT. Receipts at retail stores are forecast to grow 2.1% in the 12 months through September. Excluding fuel, sales are expected to rise 2.4%.
Shifting gears to North America, the US Labor Department will release its weekly jobless claims report at 12:30 GMT. Claims are forecast to fall by 3,000 to a seasonally adjusted 240,000 in the week ended 14 October.
The Philadelphia Fed will also report its latest manufacturing survey at 12:30 GMT. The headline indicator is expected to fall to 22.0 from 23.7.
In terms of monetary policy, Fed Bank of Kansas City President Esther George will deliver a speech at 13:30 GMT. George is not a member of this year’s Federal Open Market Committee (FOMC), which is scheduled to meet again in a few weeks.
The Australian dollar gave back gains against the dollar despite upbeat China data. The AUD/USD exchange rate reached a session high of 0.7871 before paring gains later in the day. The pair is trading flat compared to Wednesday’s close. The technical levels show immediate support at 0.7818, which is the low from Wednesday. The pair continues to trade within a 100-pip range between 0.7800 and 0.7900.
Europe’s common currency regained momentum on Wednesday, climbing back toward the 1.1800 handle. The EUR/USD touched a high of 1.1820 overnight before falling back toward 1.1800. The euro risks further downside should it break below that level. Immediate support is likely found at 1.1703.
Cable edged slightly higher in overnight trade, although gains were tepid after Bank of England Governor Mark Carney issued a stark warning about Brexit risks. Those comments outweighed Britain’s 3% inflation print, which was bigger than expected. The GBP/USD is up 0.1% to trade at 1.3210. Its immediate resistance trigger is 1.3250. On the opposite side of the ledger, support levels are found near 1.3130.