AUD/USD erases early gains, up-move capped at 0.7700 handle
|The AUD/USD pair reversed majority of its early gains to the proximity of 0.7700 handle and is now heading back towards the lower end of daily range.
Currently trading around 0.7670-65 region, the pair failed to extend the recent upward trajectory as bulls seemed unimpressed with mixed Chinese economic data. Data released during early Asian session on Wednesday showed, economic growth in the world's second largest economy held steady at 6.7% during Q3 2016, while industrial production rose at a slower pace of 6.1% during September as compared to 6.3% growth recorded in the previous month.
Being Australia's largest trading partner, today's mixed Chinese economic data provide little impetus for and the pair remained dependent on the US Dollar price dynamics.
With Chinese data out of the way, traders now look forward to the release of US housing data - building permits and housing starts, in order to grab some immediate momentum play.
Technical levels to watch
A follow through selling pressure below session low support near 0.7660 level, the pair is likely to drift immediately towards 0.7635 support before heading towards 0.7600 handle.
On the upside, 0.7690-0.7700 region remains immediate strong resistance above which a fresh leg of up-move seems to boost the pair towards August monthly high resistance near 0.7750 region, with September swing high near 0.7730 acting as intermediate resistance.
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