Data Eyed

A switch in risk sentiment helped AUD/USD bounce off session lows to close in positive territory on Thursday, the rate had dropped as low as 0.7592 as risk assets took a beating but managed to close at 0.7683 as US stocks posted a relief rally.

• Elsewhere, a spokseman for the Chinese commerce ministry said China hopes Australia can contribute more to building the relationship between the two nation, and return to its previous relationship as quickly as possible. Tensions have been simmering for some months and resulted in China banning Australian coal. The New Zealand Trade Minister weighed in on the issue, saying Australia should show respect to China.
• AUDUSD recouped the day's early losses into the close, bouncing after the pair breached support at 0.7659, Jan 18 low. Scope for a deeper pullback remains and further weakness would reinforce a corrective cycle that is allowing a recent overbought condition to unwind. Attention is on 0.7586, the 50-day EMA where a break would strengthen a bearish case. On the upside, 0.7782 is seen as a firm resistance.
• Markets look ahead to Q4 PPI and December private sector credit data, both due at 0030GMT/1130AEDT. CPI figures released earlier this week exceeded estimates, but were still well below RBA targets. Markets will look for signs of upstream price pressures.