Asia Recap: News from China helps Aussie; JPY growing amid anti-risk sentiments

China made the day for Aussie bulls today as the report published earlier today showed that Chinese factory output increased more in September than analysts forecast (8.0% against expected 7.5%). A separate piece on Q3 GDP showed that economic growth slowed less last quarter than predicted. While retail sales numbers fell short on expectations, investors preferred to look at the brighter side of life. Positive news from China supported Aussie rally across the board even despite rather dovish RBA minutes where the central bankers promised a prolonged period of monetary stability and complained about strong Aussie. JPY has been another notable mover during Asian hours. The Japanese currency is growing steadily across the board amid lingering concerns over global economic growth. Asian stocks fell during Tokyo hours, reversing yesterday’s gains as investors mulled over U.S. corporate earnings reports.

AUD/USD  is trying to settle above 0.8800 pivot. Currently the pair is trading at 0.8808 after having opened at 0.8783. Aussie dipped towards Asian low at 0.8758 on the back of accommodative RBA minutes, but it managed to reverse the losses fairly quickly.

NZD/USD  has been consolidating in a tight range with bullish bias in Asia. The pair started the day at 0.7965 and after a short-lived dip to 0.7951 strengthened towards 0.7978. Kiwi traders seem to be less enthusiastic about positive Chinese data and more worried about global economy prospects.

USD/JPY  is on the back foot. Growing anti-risk sentiments amid geopolitical turbulence coupled with economic issues keep JPY in demand. The pair started the Asian session at 106.95 and slid towards its current level of 106.55. The downside may be extended towards 106.30 once the pair absorbs demand on approach to 106.50

Other majors, namely EUR/USD and GBP/USD are locked in tight ranges, waiting for European players to join the game and add some excitement.