- AUD/USD is currently trading at 0.7167 between a range of 0.7153 and 0.7205.
- AUD/USD had started to erode the 200-day ma at 0.7191 but is finding tough resistance there.
AUD/USD has been shunned to the downside as the dollar perks up a touch and the DXY takes on the 97 handle. AUD/USD had found a lift from data published by China's National Bureau of Statistics on Wednesday that revealed retail sales had increased by 8.7% on a yearly basis in March to beat the analysts' estimates of 8.4%.
Coupled with the industrial production expanding by 8.5% to beat the market expectations of 5.9%, risk appetite was on fire and the Aussie benefitted on the belief that the first-quarter GDP growth came in at 6.4% annually to match the previous reading and did not drop as signs that China could be turning a corner.
When positive trade talk sentiment falls in as a backdrop, the mood is less negative surrounding global growth, although the IMF's downgrades to their forecasts will likely cast a dark shadow over sentiment and keep markets on edge.
Analysts at Commerzbank explained that AUD/USD has started to erode the 200-day ma at 0.7191:
The market faces tough resistance in this vicinity, namely 0.7207 (end of February high) and this may take several attempts to crack. Above here targets initially the 55-week ma at 0.7282. It stays bid above the 0.7105 uptrend Price action in January was exhaustive – the market charted a hammer (reversal). This suggests the down move ended at 0.6738. It stays immediately bid above the 2019 uptrend at 0.7090. Above 0.7295 will target the 0.7394 December high."
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