Disappointing China GDP Pushes A$ Lower, RBA Minutes Coming Up

Aussie underperformed again on Monday falling 0.3% despite stronger US equities on the back of disappointing Q2 China GDP. It broke briefly below 0.6800 in the London afternoon and reached an intraday low of 0.6788, just above initial support. It is currently around 0.6817. The USD index finished flat.

• The breach of a number of key resistance points last week highlights a stronger short-term bullish theme. A break above 0.6900 would open 0.6936. Initial support remains at 0.6784, July 13 low.
• Aussie underperformed the G10 except kiwi. AUDNZD rose 0.4% to 1.0777, close to the intraday high of 1.0785. AUDJPY fell 0.4% to 94.51, off the low of 94.02. AUDEUR is down 0.4% to 0.6065 and AUDGBP -0.2% to 0.5214.
• Equity markets were mixed with the S&P up 0.4% but the Eurostoxx down 1.0%. VIX finished at 13.5%. Oil prices fell again with Brent -1.6% to $78.56/bbl. Copper was also lower down 2.3% and iron ore is at $113/t.
• Today the RBA minutes from the July meeting are published and are likely to be scrutinised as to how “finely balanced” the decision was to pause and what may trigger another hike.