15 Jul 2015
AUD/USD at session highs after positive Chinese data
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7471 with a high of 0.7492 and a low of 0.7436.
AUD/USD is bid at session and overnight highs at time of writing on the back of a series of Chinese data and the GDP figures for Q2.
AUD/USD price action up to and on slew of Chinese data
AUD/USD had been on the bid throughout the European markets and again in the US back of poor retails sales numbers which took the pair out of a sideways consolidation contained by 0.7430/40 and up to 0.7477. Supply was met again and we went back to be support at the mid point of the handle on 0.7440/50 where the pair steadied ahead of the Chinese data flows but close to the release, the market had already ticked higher and up to the overnight highs.
AUD/USD fundamentals, China takes spotlight
The Chinese data was positive and gives a relief to the Aussie bulls who have taken the price through overnight highs. All three readings were in positive territory with Industrial Production and Retails Sales slightly better and GDP Q/Q 1.7% vs 1.6% and 7% vs 6.9% Y/Y.
Prior to the Chinese data, a turnaround in the NAB's positive June business survey boosted AUD/USD, with a score on to the 0.74 handle yesterday in Asia. "Firms appear to have shrugged off risks in the global economy as the business environment continued to improve into June," - from NAB’s Monthly Business Survey.
US retails sales offered a confusing picture, offering a round trip in the currencies with total sales falling 0.3% MoM versus expectations of a 0.3% gain while May’s growth rate was revised down to +1% from +1.2%. Markets will now turn their attentions to Yellen testifying later on in the week.
Technically, the long term trend in the Aussie is dominant from July 2011 levels of 1.1070 highs and the market remains directly offered below 0.8162 May highs. Near term, rallies have limited scope below 0.75 but through there, the next major hurdle will be initial resistance at 0.7559, being the 23.6% retracement. There after, 0.7647 come as the short term resistance line which leaves the pair in bearish territory while changing hands below.
Valeria Bednarik, chief analyst at FXStreet notes that the 4 hours chart shows that the price stands barely above a horizontal 20 SMA and that the Momentum indicator heads higher above 100, supporting the shorter term view."
AUD/USD is bid at session and overnight highs at time of writing on the back of a series of Chinese data and the GDP figures for Q2.
AUD/USD price action up to and on slew of Chinese data
AUD/USD had been on the bid throughout the European markets and again in the US back of poor retails sales numbers which took the pair out of a sideways consolidation contained by 0.7430/40 and up to 0.7477. Supply was met again and we went back to be support at the mid point of the handle on 0.7440/50 where the pair steadied ahead of the Chinese data flows but close to the release, the market had already ticked higher and up to the overnight highs.
AUD/USD fundamentals, China takes spotlight
The Chinese data was positive and gives a relief to the Aussie bulls who have taken the price through overnight highs. All three readings were in positive territory with Industrial Production and Retails Sales slightly better and GDP Q/Q 1.7% vs 1.6% and 7% vs 6.9% Y/Y.
Prior to the Chinese data, a turnaround in the NAB's positive June business survey boosted AUD/USD, with a score on to the 0.74 handle yesterday in Asia. "Firms appear to have shrugged off risks in the global economy as the business environment continued to improve into June," - from NAB’s Monthly Business Survey.
US retails sales offered a confusing picture, offering a round trip in the currencies with total sales falling 0.3% MoM versus expectations of a 0.3% gain while May’s growth rate was revised down to +1% from +1.2%. Markets will now turn their attentions to Yellen testifying later on in the week.
Technically, the long term trend in the Aussie is dominant from July 2011 levels of 1.1070 highs and the market remains directly offered below 0.8162 May highs. Near term, rallies have limited scope below 0.75 but through there, the next major hurdle will be initial resistance at 0.7559, being the 23.6% retracement. There after, 0.7647 come as the short term resistance line which leaves the pair in bearish territory while changing hands below.
Valeria Bednarik, chief analyst at FXStreet notes that the 4 hours chart shows that the price stands barely above a horizontal 20 SMA and that the Momentum indicator heads higher above 100, supporting the shorter term view."