AUD/USD struggles to gather upside traction despite upbeat China data

AUD/USD is struggling to build bullish momentum despite the above-forecast China data.
Both retail sales and industrial production for November bettered estimates.
Fears of a deeper slowdown in China are likely capping gains in the AUD.

Omkar Godbole FXStreet Contributor

AUD/USD is struggling to gather upside traction despite an above-forecast China data.

The pair picked up a bid near 0.6775 after the consumer spending, as represented by retail sales, rose 8% year-on-year in November, beating the forecasted rise of 7.6% by a big margin, having increased by 7.2% in October.

Industrial production rose 6.2% compared to an expected rise of 5%, marking an improvement from October's 4.7%. Further, the People's Bank of China has injected 300 billion Yuan into the system via a one-year medium-term lending facility.

So far, however, the upside in AUD/USD has been capped around 0.6886. At press time, the pair is trading at 0.6880, representing no change on the day.

The bullish pressure remains weak, possibly due to the news that China is planning to lower its 2020 gross domestic product target to 6% from the current year's 6.5%.

Looking forward, the fears of a deeper slowdown in China in 2020 could continue to overshadow the phase one US-China trade deal and weigh over the AUD.

Technical levels

AUD/USD

Overview
Today last price	0.6880
Today Daily Change	0.0009
Today Daily Change %	0.13
Today daily open	0.6869

Trends
Daily SMA20	0.6819
Daily SMA50	0.6825
Daily SMA100	0.6806
Daily SMA200	0.691

Levels
Previous Daily High	0.6939
Previous Daily Low	0.6863
Previous Weekly High	0.6939
Previous Weekly Low	0.68
Previous Monthly High	0.6929
Previous Monthly Low	0.6754
Daily Fibonacci 38.2%	0.6892
Daily Fibonacci 61.8%	0.691
Daily Pivot Point S1	0.6842
Daily Pivot Point S2	0.6814
Daily Pivot Point S3	0.6766
Daily Pivot Point R1	0.6918
Daily Pivot Point R2	0.6966
Daily Pivot Point R3	0.6994

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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