19 Jan 2016
AUD/USD sold-off into softer China GDP numbers
FXStreet (Mumbai) - The recent bullish momentum in the AUD/USD pair lost steam just shy of 0.69 handle and the prices dropped sharply 0.6865 region after China’s Q4 GDP figures came in a tad weaker than estimates.
AUD/USD dragged by weak China data
Currently, the AUD/USD pair trades modestly flat at 0.6871, struggling to reverse a brief dip to 0.6865 post-data release. The Aussie faded a 20-pips knee-jerk downward spike and reverted to daily highs, before meeting fresh supply and now heads towards daily lows. While markets digest the latest batch of Chinese dataflow, particularly the almost matching estimates China growth numbers.
In Q4 2015, China's economy fell to 6.8%, down from the 6.9% registered in the previous quarter and against 6.9% growth expected. While industrial production and retail sales figures from China came in slightly weaker than expectations.
The AUD/USD pair remains supported on the back stabilizing oil markets and on higher copper prices. More so, the recovery mode seen in the Asian equities also keeps the demand for higher-yielding currencies intact, which underpins the Aussie.
Meanwhile, markets continue to assess implications of softer Chinese macro release, while the sentiment on the global equities will continue to dominate further AUD moves.
AUD/USD Levels to watch
The pair heads higher and finds the immediate resistance at 0.6930/35 (1h 100-SMA/10-DMA) above which gains could be extended to the next hurdle located at 0.6970/79 (1h 200-SMA/ daily R2). On the flip side, the immediate support located at 0.6856/50 (daily low/ psychological levels). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.6824 (Seven-year low).
AUD/USD dragged by weak China data
Currently, the AUD/USD pair trades modestly flat at 0.6871, struggling to reverse a brief dip to 0.6865 post-data release. The Aussie faded a 20-pips knee-jerk downward spike and reverted to daily highs, before meeting fresh supply and now heads towards daily lows. While markets digest the latest batch of Chinese dataflow, particularly the almost matching estimates China growth numbers.
In Q4 2015, China's economy fell to 6.8%, down from the 6.9% registered in the previous quarter and against 6.9% growth expected. While industrial production and retail sales figures from China came in slightly weaker than expectations.
The AUD/USD pair remains supported on the back stabilizing oil markets and on higher copper prices. More so, the recovery mode seen in the Asian equities also keeps the demand for higher-yielding currencies intact, which underpins the Aussie.
Meanwhile, markets continue to assess implications of softer Chinese macro release, while the sentiment on the global equities will continue to dominate further AUD moves.
AUD/USD Levels to watch
The pair heads higher and finds the immediate resistance at 0.6930/35 (1h 100-SMA/10-DMA) above which gains could be extended to the next hurdle located at 0.6970/79 (1h 200-SMA/ daily R2). On the flip side, the immediate support located at 0.6856/50 (daily low/ psychological levels). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.6824 (Seven-year low).