After yesterday's sharp price movement, stabilized price during trading today in another session of trading this week, as traders continued to absorb the implications of the Convention budget. The economic data calendar is almost empty of Europe and America today and no data only from China.
Chinese economic data recorded results consistent with expectations, with the gross domestic product reading 7.8% as expected, industrial output rose by 6.3% versus expectations of a reading of 10.1%. China's retail sales registered a rise of 13.3% versus expectations by 13.6%. This was disappointing news and shows that China's efforts to increase consumption did not materialize.
Many analysts said that investment still accounts for 50% of China's GDP and the latest results simply showed no change in strong economic stimulus from the Government. Although it is considered essential reading for the relatively strong GDP under conditions of global economic growth. Under the u.s. budget issues at the moment, investors hope that demand in the fourth quarter will fall back up according to this.
The Australian dollar for sales slightly after results news, but rebounded to the highest levels since the daily currency traders do not see only a few red flags in the economic data. The Australian dollar also received support from the Goldman Sachs report which showed expectations that the Reserve Bank of Australia would return to its inclination to tighten monetary policy in November 2014.
Glenn Stevens, Governor of the Reserve Bank of Australia that are personally meaningful to the low Australian dollar/US dollar will help to rebalance the economy, but the assertion that this is a personal opinion rather than a formal indication that the Reserve Bank of Australia is willing to bear the high pair above 0.9500.
At the same time, the dollar's continued weakness against other currencies, with USD/JPY lower levels at mid-morning trading session while the EUR/AUD to 1.3700. With the approach of the euro of the highest yearly there are procedures to run a stop-loss points when this barrier is very strong and is likely to pair attempts to exceed this level as the US meeting.
