The main event today comes as China's third-quarter GDP.
Asian markets will be glued to their seats and eyes on screens as China reports its third-quarter GDP today, while otherwise, focus has been elsewhere of late given the Brexit hysteria and entertainment factor that is the U.S. presidential race while its any ones guess as to what the Federal Reserve and BoJ intend to do with their policy before the year is out.
China has been somewhat stabilizing since the start of the years debacle that was the Chinese stock market crash. The PBoC pulled out all of the stops post the crash and have actually been somewhat successful in decreasing the value of their currency to kick start the lackluster economy. Trade started to improve in the summer months when China logged stronger-than-expected trade data in August as imports unexpectedly climbed for the first time in nearly two years and the slump in exports abated.
However, that was all short-lived as disappointing China trade data for September spurred fears that any signs of a recovery may actually be faltering. China's September exports actually fell 10 percent from a year earlier. This was far worse than expected, while imports unexpectedly shrank after picking up in August, confirming weaker demand both at home and abroad. Observers were also concerned over the latest depreciation in China's yuan currency that dropped to a fresh six-year low recently.
Economists see third-quarter growth stabilizing at a 6.7% pace year on year
Within the GDP report, key elements to look out for will include property and industrial numbers. Economists see third-quarter growth stabilizing at a 6.7% pace year on year. Quarter on quarter, markets are expecting a match of prior at 1.8%.
Valeria Bednarik, chief analyst at FXStreet explained that technical readings in the 4 hours chart suggest that the pair may see a new leg higher during the upcoming sessions, "The 20 SMA has accelerated its advance, and maintains a strong upward slope below the current level, while technical indicators have turned fat within positive territory after correcting overbought conditions. The pair can go up to 0.7730, September high, where the first batch of sellers will probably surge."
Meanwhile, with spot trading at 0.7676, we can see next resistance ahead at 0.7678 (Daily High), 0.7692 (Yesterday's High), 0.7692 (Monthly High), 0.7697 (Daily Classic R1) and 0.7728 (Daily Classic R2). Support below can be found at 0.7676 (Weekly Classic R1), 0.7666 (Daily Open), 0.7666 (Hourly 20 EMA), 0.7665 (Daily Low) and 0.7661 (Daily Classic PP).