AUD/USD consolidates below 0.6800 amid mixed trade news, Aus/China data

AUD/USD trades modestly unchanged around 0.6800 amid mixed catalysts.
China flashes mixed signals after the US tariff relief while activity numbers deteriorate.
Aussie wage data fail to counter a shift in risk sentiment.

Anil Panchal FXStreet

With the latest Chinese headlines and upbeat Aussie wage data confronting sluggish activity numbers from Australia’s largest customer, AUD/USD continues taking rounds to 0.6800 ahead of European session open on Wednesday.

While second-quarter Australian Wage Price index crossed forecast on a QoQ basis, China’s below market consensus numbers of July month Retail Sales and Industrial Production weighed on the Aussie during the initial Asian session. However, the momentum was negatively affected by traders seeking further clues after the US flashed trade positive news the previous day.

As per the Bloomberg, sources say that China sticks to September trade talks with the US after the tariff delay. The negotiations were previously considered less expected due to the tariff hike by the US President Donald Trump.

It should also be noted that even after witnessing downbeat activity numbers, China’s National Bureau of Statistics (NBS) sound mostly positive in its press conference details.

Traders now await fresh catalysts to overcome the latest lack of momentum, which in turn highlights trade/political news headlines for fresh impulse amid few fresh data on the economic calendar. Though, speech from the Reserve Bank of Australia’s (RBA) Assistant Governor (Risk Management Committee) Guy Debelle will be in the spotlight.

Technical Analysis

Prices are likely to remain range-bound unless breaking 0.6745/55 or 0.6822 levels.

1. R3 0.6899
2. R2 0.6859
3. R1 0.6828
PP 0.6787
1. S1 0.6757
2. S2 0.6716
3. S3 0.6685

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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