|

AUD/USD: Bulls keep reins around 0.7350 on upbeat China data

  • AUD/USD stretches Friday’s recovery moves from a five-week low.
  • China Retail Sales, Industrial Production both crossed market forecast, prior during October.
  • Market sentiment remains mildly bid amid stimulus hopes, receding inflation fears.
  • Recently mixed Aussie data highlight Tuesday’s RBA as the key event.

AUD/USD takes the offers to refresh intraday top near 0.7345, up 0.12% on a day, following the firmer China data during early Monday. In doing so, the Aussie pair not only cheer firmer data from Australia’s largest customer but also benefits from mildly positive market sentiment.

China Retail Sales rose past 3.5% market forecast and 4.4% prior to 4.9% YoY whereas Industrial Production (IP) jumped to 3.5% versus 3.0% expected and 3.1% prior release. Alternatively, China’s House Price Index for October eased from 3.8% to 3.4% YoY.

Read: China’s Retail Sales unexpectedly rise 4.9% YoY vs. 3.5% expected, AUD/USD tests highs

Earlier in the day, the People’s Bank of China (PBOC) injected CNY1 trillion via one-year medium-term lending (MLF). As China is the largest customer of Australia, any positive from the dragon nation favors AUD/USD prices, which in turn could be witnessed by the pair’s latest moves.

Elsewhere, a 10-year low of the US Michigan Consumer Sentiment Index tested Fed rate hike talks on Friday. On the same line were the recent comments from US Treasury Secretary Janet Yellen and Federal Reserve Bank of Minneapolis President Neel Kashkari. While US Treasury Secretary Yellen defied chatters that the incoming stimulus will fuel more inflation, Fed’s Kashkari reiterate that the inflation run-up is ‘transitory’.

Against this backdrop, the US 10-year Treasury yields remain depressed around 1.558%, down 2.6 basis points (bps) whereas the S&P 500 Futures print 0.12% intraday gains at the latest.

Moving on, the recently improved risk appetite joins mixed data from Australia and China’s efforts to stay firmer to help the AUD/USD buyers. It should, however, be noted that the recent unlocks in Australia can push the Reserve Bank of Australia (RBA) to keep rate hike on the table during Tuesday’s monetary policy meeting, which in turn becomes the key for the pair traders to watch.

Technical analysis

AUD/USD keeps Friday’s bounce off the 61.8% Fibonacci retracement (Fibo.) of August-October uptrend amid an uptick in RSI, suggesting further advances. However, the MACD signals remain favorable to the bears and hence highlight the two-week-old descending trend line, around 0.7355, followed by the 100-DMA level of 0.7367, as crucial upside barriers. On the flip side, AUD/USD sellers will wait for a clear downside break of the stated Fibo. level near 0.7275 for fresh entries while the 0.7300 threshold may entertain short-term bears.

Additional important levels

Overview
Today last price0.734
Today Daily Change0.0005
Today Daily Change %0.07%
Today daily open0.7335
 
Trends
Daily SMA200.7443
Daily SMA500.7364
Daily SMA1000.737
Daily SMA2000.7545
 
Levels
Previous Daily High0.7336
Previous Daily Low0.7275
Previous Weekly High0.7432
Previous Weekly Low0.7275
Previous Monthly High0.7557
Previous Monthly Low0.7191
Daily Fibonacci 38.2%0.7313
Daily Fibonacci 61.8%0.7298
Daily Pivot Point S10.7294
Daily Pivot Point S20.7254
Daily Pivot Point S30.7233
Daily Pivot Point R10.7355
Daily Pivot Point R20.7376
Daily Pivot Point R30.7417

Author

Anil Panchal

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.

More from Anil Panchal
Share:

Editor's Picks

AUD/USD bounces back toward 0.6950 on fresh USD supply

AUD/USD bounces back toward 0.6950 in the Asian session on Friday. The US Dollar retreats from 17-month highs as traders take profits off the table ahead of the all-important US Nonfarm Payrolls report. Meanwhile, the Australian Dollar draws support from reviving expectations of a November interest rate hike amid elevated global yields and inflation risks.


USD/JPY struggles near 158.00 as USD retreats ahead of NFP

USD/JPY is struggling for fresh impetus near 158.00, moving away from the top end of its weekly range in the Asian session on Friday, after hotter-than-expected Tokyo CPI and amid a broad US Dollar retreat. Traders reposition themselves ahead of US Nonfarm Payrolls.

Gold fades the earlier optimism; back below $4,200

Gold could not sustain the post-NFP bull run past the $4,200 mark per troy ounce, receding toward the $4,180 region at the end of the week. The precious metal’s inconclusive price action comes amid fresh selling pressure hurting the US Dollar as investors assess the latest NFP data.

Crypto Today: Bitcoin, Ethereum and XRP gains reinforce bullish outlook

Cryptocurrency prices are broadly recovering on Friday, led by Bitcoin moving above $86,000. Ethereum has reaffirmed its bullish outlook, rising above $2,700 while the immediate area at $2,800 caps upside. Meanwhile, Ripple hovers near $1.54.

Week ahead – Fed minutes in the spotlight amid bond market rout

Energy crisis and soaring bond yields to stay in driver’s seat in quiet week. Fed minutes eyed after drop in October rate hike bets. ISM services PMI and Treasury auctions to be watched too. Canadian employment, Japanese wages and ECB minutes also on tap.

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082. The decline reflects a powerful combination of US Dollar strength, geopolitical uncertainty and renewed concerns about Europe's exposure to higher energy prices.