AUD/USD analysis: Chinese growth to set Aussie's tone
AUD/USD Current price: 0.7423
- Rally in equities partially offset the sour tone of base metals.
- Chinese Q2 GDP expected to show an annual growth of 6.7%.
The Aussie found support in equities, settling against its American rival at 0.7423, as Wall Street closed the week with solid gains, offsetting the sour tone of base metals amid concerns related to the escalating trade war between the US and China. The pair, however, has finished a fourth consecutive week around the 0.7400 level, unable to find a certain direction, and holding not far from its yearly low of 0.7310. There were no big events in Australia last week, and this upcoming one will bring the latest RBA's Meeting Minutes next Tuesday. At the beginning of the week, China will offer multiple relevant figures, including Retail Sales, Industrial Production, and more relevant, Q2 GDP, this last seen posting a yearly growth of 6.7%. A reading below expected could hurt the Australian currency. Technically, the daily chart offers a neutral stance, as the pair finished above a horizontal 20 DMA, but far below bearish larger ones, while technical indicators head north, but the RSI currently at 49. Shorter term, and according to the 4 hours chart, the technical picture is quite alike, as indicators entered positive territory but lost upward strength, while the pair settled above a bearish 20 SMA and a flat 100 SMA, but remains below a mild bearish 200 SMA.
Support levels: 0.7370 0.7340 0.7310
Resistance levels: 0.7445 0.7490 0.7525
Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
