CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open an account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open an account
✖

Asian Open: China’s GDP in focus today

Article By: ,  Market Analyst
January 16, 2022 11:03 PM

US Friday close:

  • The Dow Jones fell -201.79 points (-0.56%) to close at 35,911.81
  • The S&P 500 rose 3.82 points (0.09%) to close at 4,662.85
  • The Nasdaq 100 rose 115.977 points (0.75%) to close at 15,611.59

Asian Indices:

  • Australia’s ASX 200 index closed at 7,393.90 on Friday
  • Japan's Nikkei 225 index closed at 28,124.28 on Friday
  • Hong Kong's Hang Seng index closed at 24,383.32 on Friday
  • China'sA50 Index closed at 15,064.20 on Friday

 

 

Wall Street was mixed amidst weak data and earnings

Retail sales fell -1.9% in December, which was its weakest print in 10-months as shoppers appear to have taken the advice to bring their purchases forward. Consumer sentiment was also lower according to the University of Michigan Consumer Sentiment survey. At 68.8 it sits just above its 10-year low seen in November. And perhaps not so surprisingly, inflation expectations also rose. The S&P 500 recouped earlier losses to close just 0.8% higher whilst the Dow fell -0.56%. The Nasdaq 100 closed 0.75% higher after opening at the low of the day, yet in comparison to Thursday’s sell-off it was a minor victory at best.

ASX 200 falters below 7500

Each time it looked as though the ASX 200 could finally challenge 7500, bears return to drive it lower. It should be noted that the more volatile days are bearish and prices are now probing trend support, and we are on guard for a bearish break of it.

ASX 200: 7393.9 (-1.08%), 16 January 2022

  • Utilities (0.4%) was the strongest sector and Information Technology (-3.92%) was the weakest
  • 1 out of the 11 sectors closed higher
  • 10 out of the 11 sectors closed lower
  • 6 out of the 11 sectors outperformed the index
  • 149 (74.50%) stocks advanced, 46 (23.00%) stocks declined

Outperformers:

  • +4.71% - Telix Pharmaceuticals Ltd (TLX.AX)
  • +3.57% - Resmed Inc (RMD.AX)
  • +3.04% - EBOS Group Ltd (EBO.AX)

Underperformers:

  • -15.82% - Pendal Group Ltd (PDL.AX)
  • -9.16% - Afterpay Ltd (APT.AX)
  • -5.13% - Zip Co Ltd (Z1P.AX)

 

Read our ASX 200 trading guide

 

China’s GDP report at 13:00 is the main event in Asia

China release GDP data at 13:00 AEDT, and Q3 growth is expected to fall to 3.3% from 4.9% previously. And this makes sense as PMI contracted a couple of months ago, and retail sales and investments fell much further than expected last month. And, as inflation was also underwhelming in last week’s report, it begs the question as to whether Beijing will be prompted to provide more stimulus. Therefore, if GDP comes in below expectations we could even see Chinese equity markets rally if stimulus is deemed to be on the horizon.

The China A50 closed below 15,200 for a second consecutive day although momentum is waning. A stronger than expected GDP report could helped it recover back above 15,200 (or even a weaker than expected), but we’d expect it to remain below 15,200 if GDP comes in around 3.3%.

 

Read our guide on the PBOC (People's Bank of China) and inflation

 

USD pared some of its week’s losses on Friday

Expectations for the Fed to hike more aggressively helped the US catch a bid and snap a 3-day losing streak and rally from the September highs. That said, the US dollar was still the weakest major currency last week but it’s possible we have seen a corrective low. We also suspect the euro has seen its corrective high having found resistance below the 1.15 handle and November lows.

The Australian dollar was the weakest currency on Friday and closed lower against all of its peers. AUD/CAD closed back below the March 2020 high which has invalidated our near-term bullish bias. AUD/JPY fell to a 3-week low and GBP/AUD closed at its highest level since August. AUD/USD fell over -1% and below its 20-day eMA, but a potential setup that has caught our eye is on AUD/CHF.

Momentum shift at resistance on AUD/CHF

Since the middle of December, AUD/CHF saw several failed attempts to break 0.6677 resistance, before Thursday’s bearish engulfing candle and Friday’s bearish range expansion confirmed a momentum shift at resistance. Prices respected trend support but we favour a downside break of it due to the strength of momentum. Traders can wait for a break of trend support with an initial target around the 0.6540 low.

Gold’s rally pauses for breath

Gold’s rally has stalled just below the December high which was marked with a large bearish engulfing candle. With two bearish candles forming at this cycle high we suspect it could enter a retracement phase whilst prices remain below 1830, but we’d also need to see a break above 1834 before becoming convinced that its next upleg will be sustained. And with real yields (TIPS) rising it further suggests gold may need to pull back.

Up Next (Times in AEDT)

 

 

 

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.

StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Europe Limited, and FOREX.com/ie is a domain operated by StoneX Europe Ltd, a member of StoneX Group Inc. StoneX Europe Ltd, is a Cyprus Investment Firm (CIF) company registered to the Department of Registrar of Companies and Official Receiver with a Registration Number HE409708, and authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 400/21. StoneX Europe is a Member of the Investor Compensation Fund (ICF) and has its registered address at Nikokreontos 2, 5th Floor, 1066 Nicosia, Cyprus.

StoneX Europe Limited is registered with the German Federal Financial Supervisory Authority (BaFin). BaFin registration ID: 10160255

FOREX.com is a trademark of StoneX Europe Ltd, a member of StoneX Group Inc.

The statistical data and the awards received refer to the Global FOREX.com brand.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

Through passporting, StoneX Europe is allowed to provide its services and products on a cross-border basis to the following European Economic Area ("EEA") states: Austria, Bulgaria, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

Additionally, StoneX Europe Ltd is allowed to provide Investment and Ancillary Services to the following non-EU jurisdiction: Switzerland.

StoneX Europe Ltd products, services and information are not intended for residents other than the ones stated above.

Tied Agent Information: KQ Markets Europe Ltd with Company No. HE427857.
Address: Athalassas 62, Mezzanine, Strovolos, Nicosia Cyprus.
Services Provided: Reception and Transmission of Orders.
Commencement Date: 06/12/2022
Website: KQ Markets - CFD Trading | KQ Markets

We may pay inducements, such as commissions or fees, to affiliates or third-party introducers for referring clients to us. This is in line with regulatory guidelines and fully disclosed where applicable.

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation. StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

© FOREX.COM 2025