AUD/USD keeps the red near 3-week lows post-Chinese macro data

The AUD/USD pair managed to recover few pips from three-week lows, albeit seemed struggling to extend the momentum further beyond the 0.6900 handle post-Chinese macro data.

The pair remained under some selling pressure for the third consecutive session, also marking the fourth day of negative move in the previous five and retreated farther from last Friday’s post-NFP swing high to one-month tops.

Growing market concerns over a further escalation in the US-China trade tensions, coupled with increasing bets for further RBA rate cut move in the coming months had been weighing heavily on the China-proxy Australian Dollar.

This coupled with the recent US Dollar rebound - despite firming market expectations that the Fed will cut rates by the end of this year, further collaborated to the pair's ongoing slide to sub-0.6900 level, the lowest since May 24. 

Meanwhile, Friday's mixed Chinese macro releases - showing an unexpected decline in Fixed Asset Investment and Industrial Production, largely offset by stronger monthly retail sales figures, did little to provide any meaningful impetus.

Moving ahead, Friday's economic docket also highlights the release of US monthly retail sales, which might now be looked upon for some short-term trading opportunities later during the early North-American session.

Technical levels to watch