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13 May 2015
AUD/USD drops to 0.7965 on poor China data
FXStreet (Mumbai) - The Australian dollar wiped out gains and turned in the negative territory against the US dollar in the early European trades, with AUD/USD moving away from 0.80 barrier, following disappointing China economic data flow with all the major indicators missing market expectations.
AUD/USD drops from 0.7983
Currently, the AUD/USD pair trades -0.11% at 0.7968, retreating from a dip to 0.7965 post China data release. AUD/USD erased gains and turned red after a slew of Chinese macro data came in below estimates raising concerns over the fragile economic recovery in China -Australia’s top export destination.
Combined production from China's mines, manufacturers, and utilities grew 5.9% y/y in April, accelerating from March's 5.6% growth in industrial output, which was the weakest rate since February 2009. However, the data came in below markets expectations for industrial output to grow 6.0% last month.
China Retail Sales (YoY) below expectations (10.5%) in April: Actual (10%). While fixed asset investment rose 12.0% year-to-date in April, the weakest rate of record, and coming in much weaker than the expected rate of 13.5%.
Meanwhile, markets now await US retail sales data due later in the day for further momentum on the pair.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.8010 (Today’s High) levels, above which gains could be extended to 0.8029 (April 30 High) levels. On the flip side, support is seen at 0.7952 (Today’s Low) levels from here it to 0.7900 levels.
AUD/USD drops from 0.7983
Currently, the AUD/USD pair trades -0.11% at 0.7968, retreating from a dip to 0.7965 post China data release. AUD/USD erased gains and turned red after a slew of Chinese macro data came in below estimates raising concerns over the fragile economic recovery in China -Australia’s top export destination.
Combined production from China's mines, manufacturers, and utilities grew 5.9% y/y in April, accelerating from March's 5.6% growth in industrial output, which was the weakest rate since February 2009. However, the data came in below markets expectations for industrial output to grow 6.0% last month.
China Retail Sales (YoY) below expectations (10.5%) in April: Actual (10%). While fixed asset investment rose 12.0% year-to-date in April, the weakest rate of record, and coming in much weaker than the expected rate of 13.5%.
Meanwhile, markets now await US retail sales data due later in the day for further momentum on the pair.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.8010 (Today’s High) levels, above which gains could be extended to 0.8029 (April 30 High) levels. On the flip side, support is seen at 0.7952 (Today’s Low) levels from here it to 0.7900 levels.