Australian, NZ Dollars Gap Down After Chinese Data Disappoints
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Australian, NZ Dollars Gap Down After Chinese Data Disappoints

DailyFX.com -

Talking Points

  • AUD/USD and NZD/USD gapped lower at the beginning of this week
  • Chinese Industrial Production missed expectations over the weekend
  • DailyFX SSI remains net-long, implying further AUD/USD weakness

Having trouble trading the Australian Dollar ? This may be why .

The sentiment-linked Australian and New Zealand Dollars gapped lower at the beginning of this week. Over the weekend, Chinese Industrial Production crossed the wires 6.0 percent year-over-year (YoY) versus 6.5% expected and 6.8% in March. The year-to-date (YTD) figures also disappointed coming in at 5.8% versus 6.1% expected and 5.8% prior. These readings can be important for the world's second-largest economy as roughly 1/3 of its GDP is based on the manufacturing sector.

Meanwhile, the DailyFX Speculative Sentiment Index (SSI) is showing a reading of 2 for the AUD/USD following the announcement. This translates into 2 traders being long the AUD/USD for every 1 on the short side. The SSI is a contrarian indicator, implying further AUD/USD weakness ahead.

Want to learn more about the DailyFX SSI indicator? Click here to watch a tutorial .

Australian, NZ Dollars Gap Down After Chinese Data Disappoints

Australian, NZ Dollars Gap Down After Chinese Data Disappoints

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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