20 Jan 2015
AUD/JPY pivots around 96.50, China GDP awaits
FXStreet (Bali) - AUD/JPY has eased a tad lower just below 96.50 ahead of the Chinese GDP report at 2 GMT, expected to create decent 2-way business depending on the Q4 y/y outcome vs 7.2% consensus.
According to Westpac, their forecast is in line with the consensus, "looking for 7.2% y/y, with the previous print at 7.3%." The bank argues that "net exports have been strong, which will partially offset weaker nominal activity and domestic demand."
Westpac adds: "We will also see Dec IP, with the market expecting a tick up to 7.4% y/y v 7.2% in Nov. Deepening PPI deflation is expected to pull up real growth, despite soft PMIs. Other Chinese data for Dec will also be released at the same time, including retail sales and fixed asset investment."
Technically, AUD/JPY is in a consolidation phase, with the 96.70 resistance as immediate hurdle ahead of the key 97.00 round number. Only above this later, the tech picture will readjust in favour of buyers once again, following the startling recovery off sub 94.50. On the downside, the key level to watch will be 96.00, only to be threatened should China GDP miss expectations by a wide margin.
According to Westpac, their forecast is in line with the consensus, "looking for 7.2% y/y, with the previous print at 7.3%." The bank argues that "net exports have been strong, which will partially offset weaker nominal activity and domestic demand."
Westpac adds: "We will also see Dec IP, with the market expecting a tick up to 7.4% y/y v 7.2% in Nov. Deepening PPI deflation is expected to pull up real growth, despite soft PMIs. Other Chinese data for Dec will also be released at the same time, including retail sales and fixed asset investment."
Technically, AUD/JPY is in a consolidation phase, with the 96.70 resistance as immediate hurdle ahead of the key 97.00 round number. Only above this later, the tech picture will readjust in favour of buyers once again, following the startling recovery off sub 94.50. On the downside, the key level to watch will be 96.00, only to be threatened should China GDP miss expectations by a wide margin.