China industrial profits surge, but fail to lift the AUD/USD pair
|The official data released today showed China industrial profits surged 23.8% y/y in March, a huge jump from the prior figure of 2.3%.
However, the strong data failed to boost the demand for the Aussie, leaving the AUD/USD pair motionless around 0.7475 levels.
AUD/USD - weakest daily close since Jan 16
The pair dropped to 0.7458 on Wednesday; the lowest level since January 13 and closed at 0.7472; which is the weakest daily close since January 16.
The primary factor responsible for the sell-off yesterday was a weaker-than-expected headline Aussie CPI, which added credence to the argument of ‘peak inflation’ across the advanced world. Even the Trump tax plan disappointment, failed to boost the Aussie dollar.
Aussie export price and import price index released today also failed to have any impact on the AUD/USD pair. The Dollar side of the story could strengthen later today if the US durable goods orders beat estimates.
AUD/USD Technical Levels
A break above 0.7491 (Mar 9 low) would open doors for a re-test of 0.7533 (10-DMA) and 0.7553 (200-DMA). On the other hand, a breakdown of support at 0.7458 (Jan 16 low) could yield a sell-off to 0.7408 (weekly 100-MA) and 0.7370 (Dec 1 low).
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