The National Bureau of Statistics data showed on Monday China's gross domestic product (GDP) expanded 4.9 percent year on year in the third quarter of 2020, that’s lower than economists forecast, but faster than the 3.2% expansion seen in the second quarter. Meanwhile, the retail sales grew 3.3 percent year on year in September, versus a 0.5 percent growth in August. China's industrial output in September rose 6.9% from a year earlier, data shows, up from a 5.6% gain in August.
Asian shares traded higher on Monday after better-than-expected Chinese economic data and hopes on the prospect of a fresh US fiscal stimulus deal. On Friday, Wall Street closed slightly higher following the strong retail sales data. The September retail sales grew by 1.9% MoM after an increase of 0.6% MoM in the previous month.
Crude oil prices retreated from the daily highs as concerns over surging coronavirus cases globally dampened the prospects for demand recovery.
In the currency market, The British pound climbed to above 1.30 on Monday amid Brexit hopes. The investors cautiously awaiting developments on the Brexit negotiations. Both chief negotiators from the UK and EU will speak by telephone later in the day to discuss the structure of future talks.
Gold price trading slightly higher on Monday amid renewed hopes for new US fiscal stimulus after a 48-hour deadline was slapped on the stalemate between Congress and the White House.
This week the main highlights of the economic calendar will be the release of PBOC interest rate decision, RBA meeting minutes, UK, and Canada's latest inflation numbers, UK retail sales, and PMI data.
Moving ahead to the North American session, the Investors and traders now await the speech from Fed Chair Jerome Powell and the latest updates from Brexit negotiations.
Worldwide, the number of people infected with the coronavirus approaches 40 million, of which at least 1.11 million people have died and 27.49 million have recovered, according to data released by the Johns Hopkins University. India's coronavirus cases cross the 7.5 million thresholds after 55,722 fresh infections were reported in the last 24 hours
Dollar Index: The Dollar index trades slightly lower on Monday after Asian currencies rebounded boosted by the latest strong Chinese economic data.
The important levels to watch for today: Support- 93.20 and 92.80 Resistance- 93.70 and 94.
GOLD: The yellow metal trades steady above $1910 on Monday. On the upper side, the next resistance to watching $1918/1920.
The important levels to watch for today: Support- 1908 and 1900 Resistance- 1914 and 1920.
Quote of the day: Profits can be made safely only when the opportunity is available and not just because they happen to be desired or needed- Gerald M Loeb.
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