Asian stock markets rose overnight, following better than expected Chinese data. Both the GDP and retail sales numbers beat expectations, suggesting that domestic demand is picking up as well.
The US Dollar remained offered after the disappointing US inflation and retail sales figures. The market does not see a rate hike before December as likely, and the USD is losing its strength as other central banks are becoming more hawkish.
EUR/USD started the week around 1.1460. Resistance is now seen at 1.15, but a break above that level would signal that the pair could rally towards 1.16 soon.
GBP/USD consolidated in a 1.3090-1.3110 range. The next strong resistance level now lies at 1.33, although the pair might struggle to rally much further given the recent soft economic data and concerns about Brexit.
Meanwhile, the Australian Dollar is looking strong following the breakout above 0.78. There is little resistance now until 0.80, and the risk-on sentiment & recovery of commodity prices could get the AUD/USD there.
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