CNH: Rangebound After China, Australia & Others Sign Off On RCEP Trade Pact

AUD/CNH trades -10 pips at CNH4.7947 at typing, after round tripping from the earlier session high of CNH4.8085. There has been little in the way of local headline/data flow to fuel any decisive price swing.

• China and Australia both entered the RCEP free trade pact with 13 other nations after almost a decade of negotiations. Australian Trade Min Birmingham expressed hope that the deal will help fix Canberra's trade relationship with China, which has been rattled by a series of disputes. Birmingham admitted today that he has not yet heard back from Beijing over the recent "regulatory disruptions".
• On the data front, focus fell on Chinese economic activity indicators. A beat in industrial output, which maintained the pace of expansion seen the month before, was coupled with a below-forecast acceleration in retail sales growth, while the unemployment rate unexpectedly ticked lower.
• AUD/CNH has struggled to make much headway beyond Oct 28 high and chart a fully fledged double bottom pattern. Shortly after closing above the potential neckline on Nov 5, gains were capped by the descending 50-DMA and the pair turned its tail.
• Bears now look for a dip through Nov 12 low of CNH4.7803, before targeting the 200-DMA at CNH4.7451. Further losses past that moving average would open up Nov 2 low of CNH4.6809, a key near-term support. Bulls look for a jump above the aforementioned 50-DMA at CNH4.8231, which would open up Oct 12 high of CNH4.8708.