AUD/USD Technical Analysis: 0.7179 is the level to beat for the AUD bulls, focus on China data
|- AUD/USD created a classic "long-tailed" doji candle yesterday, signaling strong dip demand at the 100-day moving average (MA) line.
- That said, traders usually wait for a strong follow through, preferably a break above the high of the long-tailed doji.
- So, a move above 0.7179 (yesterday's high) may invite stronger buying pressure, leading to a move higher toward 0.7295 (Jan. 31 high).
- A convincing break above 0.7179 could happen later today if China's industrial production, retail sales, and Q1 GDP better estimate.
- In particular, a stronger than expected rebound in industrial production would add credence to upbeat PMI numbers released earlier this month and strengthen the narrative that the industrial cycle is on the verge of recovery.
- The AUD may revisit the previous day's low of 0.7139 if the China macro data disappoint expectations. That said, only a close below that level would confirm a bearish doji reversal.
- As of writing, the AUD/USD pair is trading at 0.7167, having hit a low of 0.7153.
Daily chart
Trend: Bullish above 0.7179
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.