When is the China quarterly GDP and how could it affect AUD/USD?

China quarterly GDP Overview

The National Bureau of Statistics of China (NBS) will publish its data at 02.00 GMT. China quarterly GDP is estimated to grow 0.8% in the third quarter (Q3), compared to an expansion of 1.1% in Q2. On an annual basis, the Chinese economy is forecast to expand 4.8% versus 5.2% prior.

Meanwhile, Retail Sales are expected to show an increase of 2.9% year-over-year (YoY) in September, compared to 3.4% in the previous reading. Industrial Production is projected to show a rise of 5.0% YoY in the same period versus 5.2% prior. 

How could the China quarterly GDP affect AUD/USD?

AUD/USD trades on a negative note on the day in the lead up to the China quarterly GDP, Retail Sales and Industrial Production data. The pair gains ground as the US Dollar weakens due to the US federal government shutdown has entered its 19th day with no end in sight.

If data comes in better than expected, it could lift the Australian Dollar (AUD), with the first upside barrier seen at the October 15 high of 0.6523. The next resistance level emerges at the September 1 high of 0.6560, en route to the October 6 high of 0.6620.

To the downside, the October 10 low of 0.6472 will offer some comfort to buyers. Extended losses could see a drop to the July 31 low of 0.6424. The next contention level is located at the 0.6400 psychological level.