AUD/USD analysis: bullish, despite the intraday retracement

AUD/USD Current price: 0.7800

The AUD/USD pair peaked at 0.7838 early US session, surpassing 2016 high by a couple of pips before turning south, to close the day lower at 0.7800. Strong Chinese data backed the Aussie, as Q2 GDP topped expectations, printing 6.9% against the expected 6.8%, while retail sales and industrial production in the country also surpassed market's forecasts in June, with the first up 11.0% and the second 7.6%. During the upcoming Asian session, the RBA will release the minutes of its latest meeting, but the key event this week will be June employment data next Thursday. In the meantime, and despite the daily decline, the pair remains at multi-month highs, with the risk still towards the upside. Short term, and in the 4 hours chart, the 20 SMA has extended its advance below the current level, whilst technical indicators have managed to correct extreme overbought readings, with the Momentum indicator now flat well above its mid-line and the RSI indicator heading south around 67, indicating limited bearish potential at the time being.

Support levels: 0.7795 0.7760 0.7725

Resistance levels: 0.7835 0.7870 0.7910

View Live Chart for the AUD/USD

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