Aussie May Rise On Upbeat China 3Q GDP Data

China 3Q GDP could reach 6.9%, buy AUD/USD?

China 3Q GDP could beat consensus which stands at 6.8%, any number above that could send AUD/USD higher.

• 3Q GDP data will be released on 19 October, 10am (GMT +8).
• Despite some monthly high-frequency data suggested 3Q GDP could be at 6.8%, actual data could reach 6.9% for some reasons.
• Any number above 6.8% may suggest China will continue to put “deleveraging” at priority.
• Local bonds yield may edge higher if deleveraging is the main economic objective in 2018. Such scenario will drive Shanghai stocks higher and higher Chinese stocks are likely to influence Aussie dollar higher.
• AUD/USD may be heading towards 0.7920 if China 3Q GDP reaches 6.9% or higher.