AUD/USD shrugs off dismal Aussie & China data releases, hovers at daily highs

AUD/USD quickly recovered from a minor wobble post dismal Aussie data release and even managed to clock a fresh session high of 0.7545 despite a miss on Caixin China PMI figure.  

Eyes trend line hurdle

The spot appears on track to test 0.7550 (rising trend line coming from June 24 low and July 27 low). The data released in Australia showed retail sales growth stalled in July as opposed to expected growth of 0.3%. Meanwhile, Capex plunged 5.4% in Q2, beating the estimated drop of 4.2%.

China Caixin PMI missed estimate to print at 50.00. However, a string of back to back dismal data release failed to weaken the Aussie, which seems to have be buoyed by a better-than-expected China official PMI released earlier today. The currency pair was last seen trading around 0.7540 levels

AUD/USD Technical Levels

Immediate resistance is seen at 0.7550 (rising trend line coming from June 24 low and July 27 low), which if beached would open doors for 0.7577 (10-DMA). Next major resistance is seen at 0.7676 (July 15 high). On the lower side, a violation at daily low of 0.7512 would expose 0.7494 (100-DMA), under which the spot could target 0.7420 (July 27 low).