AUD/USD aims for 0.7195/0.7200 resistance confluence ahead of China data

Expectations of upbeat data from its largest consumer and trade positive news trigger the Aussie’s u-turn.
0.7195-0.7200 area will gain market attention.

Anil Panchal FXStreet

AUD/USD is taking the bids around 0.7175 during early Wednesday. The Aussie pair remained firm on Tuesday despite dovish RBA minutes as overall market sentiment favored risk-on. China’s GDP, retail sales and industrial production will now be observed closely for fresh impulse.

Softer than expected 0.2% figure of March industrial production from the US to -0.1% joined trade positive news from the US and China in order to help the AUD/USD pair remain first during previous-day.

Global risk sentiment also remained mostly positive with the US 10-year government bond yield gaining nearly 2 basis points to around 2.59%.

It can also be said that 0.7140 support-point including 100-day SMA and 61.8% Fibonacci retracement of its December 2018 to January 2019 decline was helping the intra-day buyers.

China’s data-dump for March and first quarter (Q1) 2019 will be in the focus for Aussie traders. The retail sales (YoY) might increase to 8.4% from 8.2% and industrial production (YoY) could also rise to 5.9% from 5.3%. However, gross domestic product (GDP) might soften to 6.3% from 6.4% on a yearly format and to 1.4% from 1.5% on QoQ basis.

AUD/USD Technical Analysis

With its sustained trading beyond 0.7140 support-confluence, the quote is likely heading towards 0.7195-0.7200 resistance-joint including 200-day SMA and a horizontal line since late- February. Additionally, a break of 0.7200 might not refrain from fueling the quote towards 0.7235/40 resistance-zone.

Alternatively, pair’s slip beneath 0.7140 rest-point highlights 50-day SMA level of 0.7105 while a break of which can drag prices to the ascending trend-line stretched since early-March around 0.7080.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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