AUD/USD analysis: Chinese data to decide whether the pair can break higher or not

AUD/USD Current price: 0.7777

  • AUD/USD pressures highs ahead of Asian opening, as dollar continues to be discarded.
  • RBA Meeting's Minutes and Chinese Q1 GDP to set the tone.

The AUD/USD pair advanced modestly this Monday, settling around 0.7780, not far below Friday's multi-week high of 0.7809. The Aussie's rally has been limited by a cautious stance from traders ahead of a bunch of data coming from China today, which includes Retail Sales, Industrial Production, and Q1 GDP, this last expected to show a quarterly growth of 1.5% vs. the previous 1.6%. Additionally, the RBA will release the Minutes of its latest meeting, although the document usually has a limited impact on the currency, as the RBA Governor anticipates it in his speech when the monthly meeting takes place. The positive tone in US equities doesn't grant enthusiasm in Asian markets later, but distrust on the greenback will likely prevail. Technically, the pair continues holding above a major Fibonacci support at 0.7740, the 61.8% retracement of the December/January rally, and as long as above it, chances are to the upside. In the 4 hours chart, the price settled above its moving averages, which lack directional strength, as well as technical indicators that hold above their mid-lines.

Support levels: 07740 0.7700 0.7765

Resistance levels: 0.7785 0.7820 0.7850

View Live Chart for the AUD/USD

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