AUD/USD is attempting gains after upbeat China data

A hotter-than-expected Chinese industrial production figure is good news for the Aussie dollar, a proxy for China.

However, so far, the AUD/USD has only managed to add 10 pips. As of writing, the currency pair is trading at 0.7870.

China reported 7.2 percent year-on-year rise in industrial production in January and February, which was way above the estimated drop to 6.2 percent from the December figure of 6.6 percent. Further, the fixed asset investment increased 7.0 percent, beating the estimate of 7 percent. Meanwhile, retail sales rose 9.7 percent, missing the estimate of 9.8 percent.

The data, though positive, is likely being taken by trades with a pinch of salt, given the Lunar New Year holidays usually distorts the economic numbers. Also, mild risk aversion as represented by a 0.20 percent decline in the S&P 500 futures could be capping the upside in the AUD/USD pair.

AUD/USD Technical Levels

Valeria Bednarik, Chief Analyst at FXStreet, writes, "technically the pair is trading at the upper end of the last three weeks' range, and in the 4 hours chart, above a bullish 20 SMA and the 200 EMA, which skews the risk toward the upside, although technical indicators lost upward momentum and turned lower within positive territory while the pair remains unable to surpass the major resistance mentioned above. A clear break above it, however, should see the pair nearing the 0.8000 figure during the upcoming sessions."

Support levels: 0.7820 0.7775 0.7740

Resistance levels: 0.7890 0.7920 0.7955