AUD/USD remains capped below 0.7600 on China data dump

Dhwani Mehta FXStreet

The bulls appear little impressed by a slew of mixed Chinese economic releases, keeping AUD/USD in familiar range near fresh 10-week tops.

AUD/USD yearns for a test of 0.7600

Currently, the AUD/USD pair rises +0.29% to 7583, having met fresh sellers just below 0.76 barrier. The Aussie stalled its bullish move post the Chinese data dump, as markets digest mixed dataflow, with the Chinese GDP and retail sales bettering expectations, while the industrial production data disappointed markets slightly.

China Q4 GDP (YoY) came in at 6.8% vs. 6.70% expected and 6.70% last, while retail volumes arrived at 10.9% y/y vs 10.7% expected and 10.8% previous. Industrial production stood at 6.0% vs 6.1% expected and 6.2% last.

However, the AUD/USD pair remains supported amid less hawkish comments from the Fed Chair Yellen, which knocked-off the greenback across the board. Next of note for the major remains the Trump’s inauguration speech due around 11.30ET, which will have major impact on the USD moves, and hence, eventually on the spot.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7600 (round figure) above which gains could be extended to the next hurdle located 0.7630 (daily R2) and 0.7650 (psychological levels). On the flip side, the immediate support located at 0.7540 (5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7508 (200-DMA) and below that 0.7482 (100-DMA).

1. R3 0.7673
2. R2 0.7624
3. R1 0.7592
PP 0.7543
1. S1 0.7510
2. S2 0.7461
3. S3 0.7429

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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