AUD/USD clocks 5-week high on upbeat China data

China industrial production beats estimates
AUD/USD remains clocks 5-week high.
Confluence of 50-day MA and 50-week MA breached.

FXStreet Team FXStreet

The data released in China showed the industrial output rose 6.1% y/y in November, beating the estimate of 6.0%. Retail sales came in at +10.2 vs 10.2% expected.

The Aussie dollar, which was already strongly bid on the back of the stellar Aussie jobs data, extended the gains to a 5-week high of 0.7675 levels post-China data release. As of writing, the spot is trading at flirting with 0.7670 (confluence of 50-day MA + 50-week MA).

European desks are likely to join the USD selling party. Hence, AUD/USD could extend the gains to 0.7691 (200-day MA) in Europe. Kathy Lien from BK Asset Management writes, "the USD could extend its slide over the next 24 to 48 hours. U.S. retail sales are due for release on Thursday and while economists are looking for a pickup in demand, unless the increase is very significant on a core basis (ex-autos and gas), the positive impact on the dollar post-FOMC could be limited. The Senate and House have reached a deal on the tax bill and they are on track for final voting next week, but the dollar has taken the news in stride."

AUD/USD Technical Levels

A move above 0.7691 (200-day MA) would open up upside towards 0.7730 (Nov. 2 high) and 0.7733 (Oct. 6 low). On the other hand, a break below 0.7648 (23.6% Fib R of Sep. 8 high - Dec. 8 low) would expose 0.7625 (session low) and 0.76 (zero levels).

Author

FXStreet Team

FXStreet

EUR/USD looks offered below 1.1900

EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.