AUD/USD turns neutral near 0.7170 ahead of China GDP

Bulls turn cautious, capped below 0.7200 ahead of China data dump.
Holiday-thinned markets to exaggerate the moves, as US government shutdown remains a major risk for the greenback.

Dhwani Mehta FXStreet

Having witnessed some choppiness in the overnight trades, the AUD/USD enters a phase of come in early Asia, trading modestly flat near the 0.7170 region, with the bias leaning towards the downside heading into the Chinese data flow due on the cards at 0200 GMT.

The Chinese GDP report is likely to show the economic growth to have slowed down to 6.4% in Q4 2018 versus 6.5% previous while the industrial production is also expected to ease a bit to 5.3% versus 5.4% last.

However, the downside appears cushioned so far this session, as the USD bulls take a breather after Friday’s rally, fuelled by higher Treasury yields amid improved risk sentiment. The 10-year Treasury yields hit three-week highs near 2.79% while the US dollar reached two-week tops at 96.39 across its main competitors. At the press time, the USD index consolidates near 96.30/35 levels.

Looking ahead, the Chinese macro data remain a major risk to the Aussie dollar amid looming China slowdown fears while the sentiment around the buck could be weighed down by the US government shutdown, as the holiday-thinned light trading could exaggerate the price movement. The US markets are closed today in observance of Martin Luther King Day.

AUD/USD Technical Levels

AUD/USD

Overview:
    Today Last Price: 0.7166
    Today Daily change: -0.0002 pips
    Today Daily change %: -0.03%
    Today Daily Open: 0.7168
Trends:
    Daily SMA20: 0.7112
    Daily SMA50: 0.7183
    Daily SMA100: 0.7172
    Daily SMA200: 0.7317
Levels:
    Previous Daily High: 0.7215
    Previous Daily Low: 0.7161
    Previous Weekly High: 0.7226
    Previous Weekly Low: 0.7146
    Previous Monthly High: 0.7394
    Previous Monthly Low: 0.7014
    Daily Fibonacci 38.2%: 0.7182
    Daily Fibonacci 61.8%: 0.7194
    Daily Pivot Point S1: 0.7148
    Daily Pivot Point S2: 0.7128
    Daily Pivot Point S3: 0.7095
    Daily Pivot Point R1: 0.7202
    Daily Pivot Point R2: 0.7235
    Daily Pivot Point R3: 0.7255

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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