Asian stocks rose today as the market reflected on positive economic data from China. The country’s economy rose by 6.0% in the fourth quarter. This was in line with expectations. The company grew by a QoQ rate of 1.5%. This growth was boosted by an increase in fixed asset investment, industrial sector, and retail. The fixed asset investments rose by 5.4% in December. This was higher than the previous growth of 5.2%. Industrial production rose by 6.9%, which was higher than the previous growth of 6.2%. Retail sales rose by 8.0%, which was higher than the expected 7.8%. Meanwhile, the country’s unemployment rate increased slightly from 5.1% to 5.2%. This data shows the impact of the positive trade talks on the Chinese economy.
The US dollar rose during the American session as the market reacted on manufacturing and retail sales data. The Philadelphia Fed manufacturing balance rose to 17, which was the highest level since April last year. Retail sales growth remained unchanged at 0.3% while core retail sales rose by 0.7%. Today, traders will receive the building permits and the industrial production data from the United States. The building permits are expected to have declined from 1.474 million in November to 1.468 million in December. The housing starts are expected to have increased from 1.365 million to 1.375 million in December. These numbers are important because they measure the strength of the American consumer.
The market will receive a series of important data from Europe. From the United Kingdom, the market will receive retail sales for the month of December. The retail sales are expected to have increased by a MoM rate of 0.5% in December. This will be higher than the previous decline of -0.6%. The market expects sales to have grown by 2.6% in December. The core retail sales are expected to have increased by 2.9%. These numbers will come a few days after it released its CPI and GDP data. The market will also receive the CPI data from the European Union. The headline and core CPI are expected to have remained unchanged at 1.3%.
The EUR/USD pair declined from a high of 1.1172 to a low of 1.1127. This was in reaction to data from the United States. On the hourly chart, the pair is between the 23.6% and 38.2% Fibonacci Retracement level. The price is also below the 14-day and 28-day exponential moving averages. The pair is also along the important support line shown below. There is a likelihood that the price will move upwards today as it tries to retest the previous resistance level of 1.1175.
The GBP/USD pair has found some resistance at the current level of 1.3070. The price is along the 38.2% Fibonacci Retracement level. It is also above the upper line of the triangle pattern that is shown below. It is also above the dots of the Parabolic SAR indicator. The pair will likely continue moving upwards especially if retail sales are better-than-expected.
The AUD/USD pair declined during the American session. The pair moved from a high of 0.6933 to a low of 0.6883. The pair has moved in a sideways direction this year. The current price is along the 23.6% Fibonacci Retracement level. The dots of the Parabolic SAR are trading above the price. The pair will likely continue moving lower today.