South Korea’s industrial output rose by 11.6% in September compared to last year, surpassing the expected 5.9%. This indicates a significant boost in the economy. In other market news, the NZD/USD is near a one-week low at around 0.5735 after China released its PMI data. Meanwhile, the AUD/USD is hovering close to 0.6550.

Gold Prices and Market Trends

Gold prices are trending upward as investors seek safety, but they remain below $4,050 due to the Federal Reserve’s tough stance. In China, the NBS Manufacturing PMI fell to 49 in October, while the Non-Manufacturing PMI increased slightly to 50.1. The EUR/USD is currently maintaining support levels between 1.1550 and 1.1540 as the US dollar stabilizes after gains from the FOMC meeting. The GBP/USD has reached a six-month low, continuing to weaken against the US dollar. Bitcoin recently marked 17 years since its whitepaper release, showing its growth into a $2 trillion asset. In contrast, Zcash is trading strongly at about $360. In global trade, Xi Jinping and Donald Trump have eased trade tensions. China achieved tariff reductions on Fentanyl, while the US resumed soybean exports.

Industrial Output and Currency Movements

South Korea’s industrial output surged 11.6% in September, well above expectations. This signals strong global demand for key exports like semiconductors and automobiles. The chip export cycle turned positive in late 2023 after a long decline, and this new data shows significant growth is picking up. However, this strength is not consistent across Asia. China’s manufacturing PMI of 49 indicates weakness in its factory sector. This explains why currencies like the Australian and New Zealand Dollars are struggling, despite the positive news from Korea. It suggests we should focus on specific opportunities in the Korean market rather than making broad bets on Asian growth. The US Dollar remains strong after hawkish signals from the Federal Reserve, putting pressure on other currencies. The British Pound is particularly facing challenges, hitting six-month lows near 1.3100, similar to its earlier performance during the Fed’s aggressive rate hikes in 2022 and 2023. The Euro’s defense of the 1.1550 level is critical; breaking below it could push the dollar even higher. Currently, gold is caught between seeking safety and the strength of the dollar, keeping it below $4,050. As of October 2025, inflation is still a concern, and the Fed’s strict approach makes gold less appealing, even amid global uncertainties. This situation may lead to significant price fluctuations that traders can take advantage of. Thus, derivative traders might consider strategies that capitalize on this divergence in the upcoming weeks. One idea is to use options to go long on the Korean KOSPI 200 index or the Korean Won while hedging with short positions on the Australian dollar. For gold, using straddles or strangles on major gold ETFs could be a smart way to profit from expected price swings without guessing the exact direction. Create your live VT Markets account and start trading now.

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