AUD/JPY drops to 10-day MA on horribly weak China data


  • AUD/JPY fell to the 10-day MA support of 72.04 on weak China data.
  • China's industrial production and retail sales growth slowed sharply in July.

A weaker-than-expected China data released at 02:00 GMT pushed the AUD/JPY lower to the 10-day moving average support of 72.04.

China consumer spending, as represented by retail sales, rose to 7.6% year-on-year in July, missing the forecasted rise of 8.6% by a big margin. The retail sales rose by 9.8% in the preceding month.

Meanwhile, industrial production growth slowed to 4.8% year-on-year in July, also missing the expected rise to 5.8% and down from the preceding month's print of 6.3%.

The slowdown in the industrial production is hardly surprising, given the world's second-biggest economy is embroiled in a trade war with the US.

What's more concerning is that consumer spending is weakening and so the Chinese economy could see a deeper slowdown in the near future.

As a result, the path of least resistance for the AUD, a proxy for China, is to the downside.

So far, the downside in the AUD/JPY has been restricted at the 10-day MA support of 72.04. The support, however, could be breached during the day ahead if the risk aversion worsens, courtesy of dismal China data.

As of writing, the pair is trading at 72.16.

Pivot points

    1. R3 75.31
    2. R2 74.12
    3. R1 73.33
  1. PP 72.15
    1. S1 71.36
    2. S2 70.18
    3. S3 69.39

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD falls below 1.1850 as US consumer sentiment beats

EUR/USD is trading under1.1850, off the previous levels as US consumer sentiment beat estimates with 78.9 points. The Fed refrained from adding more stimulus, supporting the dollar earlier in the week. Investors are eyeing fiscal stimulus talks.

EUR/USD News

GBP/USD falls as the EU reportedly objects Johnson's bill

GBP/USD is trading around 1.2950, off the highs. According to reports, the EU remains opposed to UK PM Johnson's controversial bill, which violates the Brexit accord. 

GBP/USD News

XAU/USD struggles to move back above 100-hour SMA

Gold regained some positive traction on the last trading day of the week and recovered a part of the previous day's losses to over one-week lows. The commodity held on to its intraday gains and traded above the $1950 level through the mid-European session.

Gold News

Ethereum hits Bitcoin's bid to lead the market

Bitcoin risks dominance after the strong rise of Ethereum. Technical indicators show some significant discrepancies keeping the stress on the board. Sentiment levels are improving and bordering on optimism.

Read more

After yesterday's JMMC meeting WTI settles near $40 per barrel

WTI has been through a rollercoaster this week. The liquid gold has been in a downtrend leading into the OPEC+ JMMC meeting and then reversed the whole move. At the meeting the group agreed to extend the compensation period for overproduction till the end of December. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures