From a five-week low, the AUD/USD extended its Friday’s recovery. Retail Sales and Industrial Production in China both exceeded market expectations earlier this month. Despite stimulus hopes and fading inflation fears, market sentiment remains mildly positive. The recent mixed Australian data highlight Tuesday’s RBA as the key event. The AUD/USD price analysis is bullish as the risk sentiment improves amid upbeat Chinese retail sales data. Further, technical will be the key. –Are you interested to learn more about low spread forex brokers? Check our detailed guide- Following stronger data from China early Monday morning, the AUD/USD price accepts bids to renew intraday highs around 0.7340, up 0.13% in one day. Accordingly, the Australian pair benefits both from better data from the country’s largest buyer, as well as slightly positive market sentiment. In China, retail sales grew more than 3.5% y/y and 4.4% y/y, while industrial production (IP) grew 3.5% y/y. As a result, the publication reported an increase of 3.1% over a forecast of 3.0%. On the other hand, China’s house price index dropped from 3.8% to 3.4% year over year in October. A trillion yuan of medium-term loans (MLFs) were disbursed by the People’s Bank of China (PBOC) earlier today. Given China’s role as Australia’s largest buyer, any positive gains in dragon countries could favor AUD/USD prices, as evidenced by recent moves in the pair. Get FREE Forex Signals Now! On Friday, the Michigan Consumer Sentiment Index reached a 10-year low, testing the Fed’s rate hike talks. Yellen and FRB Minneapolis President Kashkari followed this example with recent comments. Although US Treasury Secretary Yellen dismissed speculation that incoming stimulus would fuel inflation, Fed Chairman Kashkari insisted the inflation rise was “temporary.” The yield on 10-year US Treasuries is down 2.6 basis points (bp) to 1.458 percent, while intraday S&P 500 futures gains are just 0.12%. Recent improvements in risk appetite are helping AUD/USD buyers by combining mixed data from Australia and China’s retention efforts. However, it should be noted that the recent unlocks in Australia may force the Reserve Bank of Australia (RBA) to hold off raising interest rates during Tuesday’s monetary policy meeting, which will, in turn, be the key event for the pair traders. –Are you interested to learn more about forex signals? Check our detailed guide- AUD/USD price technical analysis: More gains on cards The AUD/USD price comfortably moves above the 20-period SMA on the 4-hour chart. The volume seems encouraging for the buyers. Meanwhile, the average daily range is 35% so far, which indicates slightly higher volatility. The bulls may aim for 0.7370 (50-period SMA) ahead of 0.7390 (200-period SMA). On the flip side, 0.7300 will be the key support to retain the buying momentum. Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal AUD/USD Daily Outlooks share Read Next Gold Price Slips from June Top Despite Firm Yields amid Risk-off Saqib Iqbal 6 months From a five-week low, the AUD/USD extended its Friday's recovery. Retail Sales and Industrial Production in China both exceeded market expectations earlier this month. Despite stimulus hopes and fading inflation fears, market sentiment remains mildly positive. The recent mixed Australian data highlight Tuesday's RBA as the key event. The AUD/USD price analysis is bullish as the risk sentiment improves amid upbeat Chinese retail sales data. Further, technical will be the key. –Are you interested to learn more about low spread forex brokers? Check our detailed guide- Following stronger data from China early Monday morning, the AUD/USD price accepts bids to… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.