AUD/USD: No response to horribly weak China data


  • AUD/USD is seeing little action despite dismal China. 
  • Both industrial production and retail sales growth slowed in August. 
  • Risk-off may worsen due to China data, leading to a drop in the AUD. 

China reported a horribly weak factory activity and consumer spending figures at 02:00 GMT. So far, however, that has failed to move the needle on the Aussie pairs. The AUD/USD pair continues to trade largely unaffected around 0.6872. 

Chinese consumer spending, as represented by retail sales, rose 7.5% year-on-year in August, missing the expected figure of 7.9% by a big margin and down from the preceding month's print of 7.6%. 

Industrial production growth also slowed to 4.4% in August, following a 4.8% rise in July. The markets were expecting a print of 5.2%. 

The slowdown in factory activity is not surprising, given the US-China trade tensions re-escalated in August. 

What's more concerning is that consumer spending is weakening and could lead to a deeper economic slowdown in the near future. 

As a result, the already depressed risk assets (due to oil spike) may extend losses during the day ahead, pushing the AUD in the red below 0.6861. As of writing, the futures on the S&P 500 are reporting a 0.65% drop.

Technically speaking, the pair looks overdue for a pullback, having failed to beat key Fibonacci retracement level of 0.6880 in the previous three trading days.  

Technical levels

AUD/USD

Overview
Today last price 0.6875
Today Daily Change -0.0003
Today Daily Change % -0.04
Today daily open 0.6878
 
Trends
Daily SMA20 0.6791
Daily SMA50 0.6853
Daily SMA100 0.6904
Daily SMA200 0.7013
Levels
Previous Daily High 0.6891
Previous Daily Low 0.6856
Previous Weekly High 0.6895
Previous Weekly Low 0.6837
Previous Monthly High 0.6869
Previous Monthly Low 0.6676
Daily Fibonacci 38.2% 0.6878
Daily Fibonacci 61.8% 0.6869
Daily Pivot Point S1 0.6859
Daily Pivot Point S2 0.684
Daily Pivot Point S3 0.6824
Daily Pivot Point R1 0.6894
Daily Pivot Point R2 0.691
Daily Pivot Point R3 0.6929

 

 

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