AUD/USD clocks 5-week high on upbeat China data
|- China industrial production beats estimates
- AUD/USD remains clocks 5-week high.
- Confluence of 50-day MA and 50-week MA breached.
The data released in China showed the industrial output rose 6.1% y/y in November, beating the estimate of 6.0%. Retail sales came in at +10.2 vs 10.2% expected.
The Aussie dollar, which was already strongly bid on the back of the stellar Aussie jobs data, extended the gains to a 5-week high of 0.7675 levels post-China data release. As of writing, the spot is trading at flirting with 0.7670 (confluence of 50-day MA + 50-week MA).
European desks are likely to join the USD selling party. Hence, AUD/USD could extend the gains to 0.7691 (200-day MA) in Europe. Kathy Lien from BK Asset Management writes, "the USD could extend its slide over the next 24 to 48 hours. U.S. retail sales are due for release on Thursday and while economists are looking for a pickup in demand, unless the increase is very significant on a core basis (ex-autos and gas), the positive impact on the dollar post-FOMC could be limited. The Senate and House have reached a deal on the tax bill and they are on track for final voting next week, but the dollar has taken the news in stride."
AUD/USD Technical Levels
A move above 0.7691 (200-day MA) would open up upside towards 0.7730 (Nov. 2 high) and 0.7733 (Oct. 6 low). On the other hand, a break below 0.7648 (23.6% Fib R of Sep. 8 high - Dec. 8 low) would expose 0.7625 (session low) and 0.76 (zero levels).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.