•  Fails to capitalize on this week’s steady recovery led by US-China trade optimism.
   •  Disappointing Chinese macro data prompts some aggressive selling on Friday.
   •  Subdued USD demand helped limit downside ahead of today’s US retail sales data.

The AUD/USD pair now seems to have entered a bearish consolidation phase and was seen oscillating in a narrow band near the lower end of its weekly trading range. 

Despite the recent optimism over easing US-China trade tensions, the pair struggled to build on this week's steady recovery move witnessed over the past three sessions and came under some renewed selling pressure on Friday following the release of disappointing Chinese economic data.

Chinese retail sales missed forecasts and came in to show an annualized growth of 8.1% for November. Adding to this, industrial production growth slowed to the weakest level since the start of 2016 and prompted some aggressive selling around the China-proxy Australian Dollar. 

The pair erased all of its weekly gains, though uncertainty over the Fed's rate hike path in 2019, especially after the US President Donald Trump latest criticism on Thursday, kept the US Dollar bulls on the defensive and helped limit further downside, at least for the time being. 

It would now be interesting to see if the pair is able to find any buying interest at lower levels or the latest leg of a downfall marks the resumption of last week's sharp retracement slide from the 0.7400 neighborhood, or over four-month tops.

Moving ahead, today's US economic docket, highlighting the release of monthly retail sales data will now be looked upon for some short-term trading impetus on the last trading day of the week. 

Technical levels to watch

A follow-through selling has the potential to continue dragging the pair further towards 0.7140 horizontal zone en-route the 0.7100 handle. On the flip side, recovery attempts back above the 0.7200 handle might now confront some fresh supply near the 0.7220-25 area, which is followed by resistance near weekly tops, around the 0.7245-50 region.

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

AUD/USD struggling around 0.6400 and at risk of piercing the year’s low

AUD/USD struggling around 0.6400 and at risk of piercing the year’s low

Disappointing Australian data and a deteriorated market mood weighed on AUD/USD, quickly approaching the 2022 low at 0.6362. RBA’s Financial Stability report coming up next.


EUR/USD extends decline sub-0.9800 as risk aversion intensifies

EUR/USD extends decline sub-0.9800 as risk aversion intensifies

The American dollar maintains a strong upward momentum amid renewed inflation and recession concerns. EUR/USD further retreated after failing to regain parity mid-week.


Gold struggling to retain its bullish strength

Gold struggling to retain its bullish strength

XAUUSD shed some ground on Thursday, currently hovering around $1,713.00. The dollar has gathered momentum as Wall Street opened in the red, holding into negative territory at the time. Also, government bond yields resumed their advances and hold near fresh weekly highs.

Gold News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: The next move could surprise us all

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: The next move could surprise us all

The crypto market displays mixed signals but hints that the bearish trend is not over yet. Adopting a get-in-get-out mentality may be the more favorable approach for investors looking to expose themselves to the market.

Read more

US September NFP Preview: Analyzing gold's reaction to NFP surprises Premium

US September NFP Preview: Analyzing gold's reaction to NFP surprises

Historically, how impactful has the US jobs report been on gold’s valuation? In this article, we present results from a study in which we analyzed the XAUUSD pair's reaction to the previous 26 NFP prints.

Read more