China’s Gross Domestic Product (GDP) grew by 1.1% in the third quarter, beating the expected 0.8%. This positive economic update boosted the Australian Dollar, helping it keep its gains. The USD/CAD pair dipped slightly, approaching 1.4000, even with falling oil prices. The Japanese Yen also gained some ground against a weaker USD, but further increases seem limited.

Gold Prices Drop After Holidays

Gold prices have fallen to about $4,245 following the holiday season, as demand decreased from recent highs. In India and Pakistan, however, gold prices have increased according to FXStreet data. In the cryptocurrency world, Mantle, Zcash, and Bittensor made gains after earlier declines. On the other hand, BNB, Solana, and Cardano faced double-digit losses due to a wave of market liquidations exceeding $1 billion. The EUR/USD pair is steady around 1.1650 after S&P Global Ratings downgraded France’s credit rating due to budget concerns. The GBP/USD pair remains stable above 1.3400, balancing a weaker USD with cautious expectations from the Bank of England.

China’s Economic Growth Impact

China’s GDP growth of 1.1% in the third quarter indicates a strong demand for commodities, which helps support the Australian Dollar. For instance, Australian iron ore exports to China increased by 4% in September 2025 from the prior month, reinforcing this positive trend. The Euro is facing challenges, especially after S&P downgraded France’s credit rating to A+. This points to financial weaknesses in a key Eurozone country, making it tough to feel optimistic about the EUR/USD pair. This news comes after last week’s unexpected 0.5% drop in German factory orders, indicating broader regional weakness. Gold is currently sitting below $4,250 after a strong upward run, which was fueled by the Federal Reserve’s rate cut in August 2025. With China’s robust economic data, some investors may shift funds from safe havens to riskier assets in the short term. This pullback offers a chance to reassess strategies before the next major event. Looking ahead, the meeting between Trump and Xi is generating significant uncertainty, particularly regarding strategic resources. The Cboe Volatility Index (VIX) rose above 18 for the first time in two months last week, signaling that traders are buying protection, like puts on major market indices, as the summit approaches. Meanwhile, the British Pound is stuck in a narrow range against a weaker US Dollar. Dovish expectations for the Bank of England are limiting any major gains. Last week, UK inflation data showed a rate of 2.2%, slightly above the bank’s target, leaving little ground for a hawkish shift. This stalemate makes low-volatility options strategies like short straddles appealing for GBP/USD. The cryptocurrency market is showing stress, with over $1 billion in liquidations leading to significant losses in tokens like Solana and Cardano. Such deleveraging events can clear out weak investors and may indicate a short-term bottom, but they also highlight high volatility. Open interest on major crypto derivatives exchanges has dropped by nearly 15% since Friday, showing traders are closing positions. Create your live VT Markets account and start trading now.

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