AUD/USD analysis: Chinese woes weighed on the Aussie

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7233

Chinese data came in below expectations, hurting Aussie demand even further.
AUD/USD to challenge the 0.7200 figure if US Retail Sales beat expectations.

The AUD/USD pair fell to a fresh yearly low of 0.7223 to settle a few pips above this last, with the Aussie undermined by poor Australian and Chinese data released at the beginning of the day, which offset the improved market mood. Australia released the NAB's index on Business Confidence for July which advanced to 7 from the previous 6, although Business Conditions index missed market's expectations, down to 12 for the month from the previous 14. The biggest disappointment, however, came from China, as July Retail Sales rose by less-than-expected, up 8.8% YoY, while Industrial Production in the same month grew 6.0%, matching June's reading but missing market's forecast of 6.3%. The macroeconomic calendar will remain empty in Asia, which may result in the pair consolidating around the current level ahead of US data. The pair is bearish short-term and according to technical readings in the 4 hours chart, as it keeps developing below a firmly bearish 20 SMA, while technical indicators resumed their declines within negative territory after correcting oversold conditions. The RSI is back in extreme levels, but with no signs of changing course and still above this month lows, leaving doors open for additional declines.

Support levels: 0.7250 0.7215 0.7180

Resistance levels: 0.7290 0.7320 0.7360

View Live Chart for the AUD/USD

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.

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