AUD/USD can't hold onto 0.7100 as China GDP comes over the horizon
|- The Aussie camp sees downside risks coming into focus on Friday.
- China's GDP data is expected to show slowing growth, boding poorly for Asian markets' risk appetite.
The AUD/USD is trading firmly into the downside heading into Friday's overnight session, testing beneath 0.7100 after Thursday's bullish attempt to 0.7150 reversed as the US Dollar saw broad-market pickup once again, sending Dollar-crosses down across the board.
Friday is likely to see the AUD take another leg lower, with high-impact economic data from China due early in the day at 02:00 GMT. China's GDP figures are expected to show a decline in Chinese domestic growth, with 2018's 3rd quarter q/q growth expected to clip down to 1.6% (last 1.8%), and the y/y figure is expected to dip from 6.7% to 6.6%.
Trade war concerns and fallout from trade tariffs from the US are beginning to take their toll on the Chinese economy, and Asia-session traders are getting nervous that the slowdown will have a measurable effect on China's major trading partners, including Australia.
AUD/USD levels to watch
The Aussie is planting itself firmly into the bearish side for Friday, as noted by FXStreet's own Valeria Bednarik: "technically, the short-term picture supports such decline, as in the 4 hours chart, the pair trades back below the 20 and 100 SMA, while technical indicators re-entered negative territory and stand at fresh daily lows. Furthermore, the pair has broken below the 38.2% retracement of the latest daily slump after flirting with the 61.8% retracement of the same decline late Wednesday. The next Fibonacci support comes at 0.7085, the only obstacle ahead of the yearly low."
Support levels: 0.7085 0.7040 0.7000
Resistance levels: 0.7120 0.7160 0.7200
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