- Chinese figures fail to push the AUD/USD out of its paddock.
- RBA limps in with rhetoric that remains unchanged.
The Aussie whipped in Asia trading following mixed Chinese data, but the AUD/USD pair remains near 0.7525 as AUD bulls continue to sputter.
China April data dump: Industrial production – a big beat, Retail sales disappoint
China’s data figures for Tuesday came in mixed, with Retail Sales missing the expected 10% to print at 9.4%, while Industrial Production came in at 7%, a clip higher than the expected 6.3%. The mixed results sent the Aussie spreading in both directions, before finally settling near where it started. The Reserve Bank of Australia (RBA) could expose the Aussie to further downside though, following their dovish Meeting Minutes that failed to provide anything new, but highlighted the central bank’s tenuously dovish position, and rates are set to remain where there are for the foreseeable future.
RBA minutes: More likely next cash rate move is up rather than down
AUD/USD levels to watch
0.7500 remains the key support level for the pair, and as FXStreet’s Valeria Bednarik noted, “the pair has been capped by selling interest around the 38.2% retracement of the latest weekly decline at 0.7565, while it nears a bullish 20 SMA, as technical indicators retreated sharply in positive territory. The pair can regain its upward strength on a break above the mentioned resistance, while below the 0.7500 figure, bears will likely regain control of the pair.”
Support levels: 0.7500 0.7470 0.7435
Resistance levels: 0.7565 0.7610 0.7650
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