Another factor for oil was the data from China today, which showed better than expected GDP growth for Q3, and better than expected Industrial Output and Retail Sales growth in September data. This paints a picture of an expected continuing demand improvement in China, adding to the oil bid.

Also playing a part was the release of privately surveyed oil inventory data at the end of Tuesday in the US that registered a much larger crude oil headline drawdown than was expected.

Adding further fuel to the fire was Chinese Communist Party Chairman Xi speaking at the Belt and Road Forum in Beijing. Of particular note was Xi promising that China will remove all restrictions on foreign investment access in the manufacturing sector.

Gold headed higher during the session. Rising oil prices threaten to tip economies into recession, which is likely to see central banks not being so quite ‘higher for longer’ (for interest rates) as was expected prior to the Hamas attacks on Israel and the subsequent war.

The USD fell on the session against major FX. AUD and NZD were notably bid after the Chinese data. CAD, too, is stronger. EUR and GBP did little more than return to earlier highs while the hapless yen managed a gain on the session.

Reserve Bank of Australia Governor Bullock spoke today, with a hawkish tile to her comments.

Asian equity markets:

  • Japan’s Nikkei 225 -0.2%
  • China’s Shanghai Composite -0.6%
  • Hong Kong’s Hang Seng: -0.1%
  • South Korea’s KOSPI +0.1%
  • Australia’s S&P/ASX 200 +0.1%
ForexLive Asia-Pacific FX news wrap: Oil, gold, AUD, NZD all higher in Asia trade

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