AUDUSD briefly traded above 0.7870 as........>

AUSSIE: AUDUSD briefly traded above 0.7870 as Chinese industrial production data

surpassed expectations, while Chinese retail sales provided a modest miss. The

pair ran in to supply in front of 0.7900 in NY dealing, with 0.7897 now

providing the initial resistance level. 

- From a technical perspective the break of the 55-DMA (0.7887) has lacked

follow through with the pair rejected ahead of the falling daily TL off 2018

highs. Bulls now look for a close above 0.7935 to confirm a break of the TL and

above 0.7989 to shift overall focus to 0.8135-62 where 2015 & 2018 highs are

situated. Bears continue to look for a close below the 21-DMA to gain breathing

room and below the 100-DMA to return pressure to 0.7694-0.7710.

- It is worth noting that some A$1.11bln worth of AUDUSD options with strikes

between 0.7800-0.7805 are set to roll off at Wednesday's 10:00 NY cut.