- The Aussie dollar is erasing gains after a weaker-than-expected China retail sales release.
- China's economy could slow more than expected in the coming quarters a domestic demand is showing no signs of life.
- Above-forecast China industrial production and fixed asset investment data may cap the downside in the AUD/USD.
The Aussie dollar, a proxy for China, is feeling the pull of gravity after China reported a sharp slowdown in the retail sales in October.
The data came in at 8.6 percent, missing the estimated figure of 9.1 percent. The big miss reinforces the view that domestic demand remains soft and is unlikely to support the economy, which may feel the heat of Trump's trade war in the coming quarters.
Simply put, China's economy could slow more than previously anticipated as domestic demand is unlikely to compensate for the drop in international trade's share in GDP.
As a result, the Aussie dollar risks falling into the red during the day ahead. As of writing, the AUD/USD is reporting marginal gains at 0.7226, having clocked a high of 0.7239 earlier today.
A better-than-expected China industrial production and fixed asset investment figure may have put a floor under the Aussie dollar.
AUD/USD Technical Levels
AUD/USD
Overview:
Last Price: 0.7225
Daily change: 14 pips
Daily change: 0.194%
Daily Open: 0.7211
Trends:
Daily SMA20: 0.7148
Daily SMA50: 0.7161
Daily SMA100: 0.7259
Daily SMA200: 0.7462
Levels:
Daily High: 0.7226
Daily Low: 0.7164
Weekly High: 0.7304
Weekly Low: 0.7183
Monthly High: 0.724
Monthly Low: 0.702
Daily Fibonacci 38.2%: 0.7202
Daily Fibonacci 61.8%: 0.7187
Daily Pivot Point S1: 0.7174
Daily Pivot Point S2: 0.7138
Daily Pivot Point S3: 0.7112
Daily Pivot Point R1: 0.7237
Daily Pivot Point R2: 0.7263
Daily Pivot Point R3: 0.7299
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