AUD/USD analysis: Chinese data to set the tone of the Aussie
|AUD/USD Current price: 0.7826
The AUD/USD pair traded as high as 0.7833 on Friday, ending the day a handful of pips below it, stalling its recovery around 2016 high of 0.7834. Despite the RBA disappointed by keeping its neutral stance in its latest monetary policy meeting, the Aussie surged on the back of dollar's weakness and commodities' recovery, finding also support in strong Chinese trade data released mid last week. Australia will release its June employment data next Thursday, forecasted softer than May figures, but at the beginning of the week, the commodity-linked currency will have to face a major macroeconomic challenge in the form of Chinese figures. Early Monday, China will release its Q2 GDP, and June retail sales and industrial production numbers, which will set the tone for the AUD. From a technical point of view the pair is bullish, with technical indicators heading sharply higher, despite being in overbought levels, whilst the 20 SMA accelerate higher, but stands far below the current level. In the 4 hours chart, the RSI indicator turned horizontal around 86, while the Momentum indicator eased modestly, holding within extreme overbought territory, while the 20 SMA heads north almost vertically, but anyway lagging from price's action, also maintaining the risk towards the upside.
Support levels: 0.7800 0.7760 0.7725
Resistance levels: 0.7835 0.7870 0.7910
View Live Chart for the AUD/USD
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