AUD/USD jumps 23 pips on better-than-expected China industrial production figure

• AUD/USD jumped 23 pips from session lows, possibly on the back of an above-forecast China industrial production data.
• The recovery could be short-lived, as China’s Q4 GDP printed at the lowest level since early 2009.

The AUD/USD pair jumped 23 pips to 0.7177 soon before press time, courtesy of a better-than-expected China data.

China’s industrial production rose to 5.7 percent year-on-year in December, beating the forecast of 5.3 percent by a big margin. The above-forecast reading could be taken a sign the global demand may not be as weak as previously thought. Meanwhile, retail sales ticked higher to 8.2 percent in December as expected.

Still, the AUD risks falling back to session lows near 0.7150 as China’s growth rate in the fourth quarter slowed to 6.4 percent year-on-year – the lowest since early 2009 – more so because both the PBOC and the Chinese government are unlikely to introduce a flood-like stimulus to support the ailing economy.

As of writing, the AUD/USD is trading at 0.7166. Thursday’s low of 0.7147 is the level to beat for the bears. On the higher side, 0.7235 (Jan. 11 high) is the key resistance.

AUD/USD Technical Levels