Free Trial

China Data Awaited


After dropping following the labour market report yesterday, AUD/USD went bid during European hours, pushing up to fresh highs of 0.7761, the pair moved in range around this level, and currently trades flat at 0.7752.

  • CBA cautions that "If market participants continue to view strong US economic performance as a barometer for the global economy, AUD can remain supported. However, AUD/USD faces downside risks if a faster than expected US economic recovery pushes US bond yields higher."
  • From a technical perspective AUD/USD traded firmer Wednesday, clearing 0.7677, Apr 7 high. The move higher has also resulted in a break of trendline resistance drawn off the Feb 25 high and, price is above the neckline of a recent head and shoulders reversal pattern, suggesting scope for a stronger recovery. An ability to remain above the 50-dma would strengthen a bullish case. Initial firm support is at 0.7635, Feb 14 low. A break would be bearish.
  • There is no domestic data on the docket today, but participants will look the monthly Chinese data dump later today, the releases include GDP, industrial production and retail sales.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.