AUDJPY potential shorts due weaker than expected China eco data.
Industrial output grew by 5.7% year-on-year in July, down from 6.8% in June, marking the slowest growth since November 2024. This fell short of the 5.9% forecast by analysts in a Reuters poll and 5.82% by Wind.
Retail sales, a key gauge of consumption, rose by 3.7% year-on-year in July, down from 4.8% in June and below the expected 4.6% (Reuters) and 4.87% (Wind). This was the slowest growth since December 2024.
The reason for this trade idea is that Australia ranks as China’s seventh-largest trading partner overall, based on data from the Australian Department of Foreign Affairs and Trade and Chinese trade reports. Australia is China’s fifth-largest source of imports (primarily commodities like iron ore, coal, and natural gas) and tenth-largest export destination. Any news emerging from China has the potential to impact the Australian dollar.
Retail sales, a key gauge of consumption, rose by 3.7% year-on-year in July, down from 4.8% in June and below the expected 4.6% (Reuters) and 4.87% (Wind). This was the slowest growth since December 2024.
The reason for this trade idea is that Australia ranks as China’s seventh-largest trading partner overall, based on data from the Australian Department of Foreign Affairs and Trade and Chinese trade reports. Australia is China’s fifth-largest source of imports (primarily commodities like iron ore, coal, and natural gas) and tenth-largest export destination. Any news emerging from China has the potential to impact the Australian dollar.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.