Commodity currencies such as the Australian, the New Zealand and the Canadian dollars recovered from its recent lows against their most major counterparts in the Asian session on Monday, after Chinese GDP for the third quarter beat analysts’ estimates.
Data from the China’s National Bureau of Statistics showed that the world’s second-largest economy expanded 6.9 percent on year in the third quarter of 2015, beating forecasts for an increase of 6.8 percent although slowing from 7.0 percent growth in the preceding three months.
China’s retail sales gained an annual 10.9 percent in September, topping expectations for 10.8 percent, which would have been unchanged from the growth in August.However, the NBS said that China’s industrial production added just 5.7 percent on year in September, missing forecasts for 6.0 percent and down from 6.1 percent in August.
In other economic news, data from Business NZ showed that the services sector in New Zealand continued to expand in September, and at an accelerated pace, with a Performance of Services Index score of 59.3.
Last Friday, the Commodity currencies such as the Australian, the New Zealand and the Canadian dollars showed mixed performance against their major rivals. The Australian dollar held steady against the yen and the euro, while it fell against the U.S. dollar.
The New Zealand and the Canadian dollars held steady against the U.S. dollar and they rose against the yen. Meanwhile, against the euro, the kiwi rose and the loonie held steady.
In the Asian trading, the Australian dollar rose to 0.7286 against the U.S. dollar and 0.9419 against the Canadian dollar, from a recent 5-day low of 0.7239 and nearly a 2-week low of 0.9359, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.74 against the greenback and 0.96 against the loonie.
Against the yen and the euro, the aussie advanced to 86.93 and 1.5599 from recent 4-day lows of 86.27 and 1.5707, respectively. The aussie is likely to find resistance around 89.00 against the yen and 1.53 against the euro.
The aussie edged up to 1.0705 against the NZ dollar, from a recent low of 1.0656. On the upside, 1.10 is seen as the next resistance level for the aussie.
The NZ dollar rose to 0.6812 against the U.S. dollar and 1.6681 against the euro, from recent 4-day lows of 0.6783 and 1.6769, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.70 against the greenback and 1.62 against the euro.
Against the yen, the kiwi edged up to 81.35 from a recent low of 80.84. The kiwi may test resistance near the 84.00 region.
The Canadian dollar rose to 1.2915 against the U.S. dollar and 92.49 against the yen, from recent 4-day lows of 1.2946 and 92.03, respectively. If the loonie extends its uptrend, it is likely to find resistance around 1.27 against the greenback and 95.00 against the yen.
Against the euro, the loonie edged up to 1.4675 from a recent 4-day low of 1.4726. The loonie is likely to find resistance around 1.43 area.
Meanwhile, the safe-haven yen fell against the other major currencies following the release of Chinese data.
The yen fell to 135.94 against the euro and 184.59 against the pound, from last week’s closing quotes of 135.49 and 184.38, respectively. If the yen extends its downtrend, it is likely to find support around 137.00 against the euro and 188.00 against the pound.
Against the U.S. dollar and the Swiss franc, the yen dropped to 119.61 and 125.34 from Friday’s closing quotes of 119.41 and 125.17, respectively. The yen is likely to find support around 121.00 against the greenback and 127.00 against the Swiss franc.
Looking ahead, Eurozone construction output for August is due to be released, later in the day.
In the New York session, U.S. NAHB housing market index for October is set to be published.
At 10:00 am ET, Federal Reserve Governor Lael Brainard will deliver a speech titled “Removing Unnecessary Regulatory Burden” at the Chicago Fed’s outreach meeting.
At 12:00 pm ET, Federal Reserve Bank of Richmond President Jeffrey Lacker will deliver a speech titled “Early Childhood Education in the Context of Lifetime Human Capital Investment” at the University of Richmond.
The Canadians are likely to vote for a new Parliament in the 42nd federal election due to be held today.
The material has been provided by InstaForex Company – www.instaforex.com