AUD/USD fades back to breakout point

By: Adam Button

AUD/USD has slipped as low as 1.0533 on the failure to crack 1.0600 (high of 1.0599). Last week and earlier this week, the 1.0520/30 level was the sticky spot. It's typical for a pair to go back and retest a break so I'm not surprised to see it back here. Yesterday, I suggested these levels might be a good spot to buy and I stand by that. A stop at 1.0500 is a good place to cut out if risk trades sour next week. On a deeper retracement, I would look to buy again ahead of Chinese GDP and industrial production data to be released next Friday. Given the outstanding Chinese trade numbers, I expect an upside surprise.