AUD/USD gains on better retail sales data. China’s sluggish investor sentiment and dismal GDP projection may weigh on the Aussie. The rise in US yields and Powell’s testimony may question the Aussie bulls. The AUD/USD price traded up 0.34% at 0.7305 after earlier data showing Australian retail sales decreased 1.7% from the previous month. Australia’s Retail Sales for August improved from -2.7% to -1.7% from -2.5% expected. The Industrial Profits in China were down 10.1% YoY versus 16.4% expected. -Are you looking for automated trading? Check our detailed guide- In addition to mixed data from Australia and China, sluggish investor sentiment contributes to the recent weakness in the AUD/USD pair. WSJ reports that a power outage in Beijing has led to a new chip scarcity threat, as Goldman Sachs reported. “The economic recovery in East Asia and the Pacific will fail,” the World Bank told Reuters, adding that China’s GDP would fall to 8.5% in 2021. AUD/USD sellers are being tested on the flip side by poor home Covid scores and optimism about hitting Australia’s 80 percent vaccination target. Additionally, there was talk of the West’s economy recovering after the pandemic and Britain’s interest in joining the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP). On Monday, the 10-year US bond yield briefly topped 1.5%, a level not seen since June 2021, and the 2-year bond yield hit its highest level since March 2020. Due to the Bank of Japan’s policy of controlling yield curves to keep them near zero, investors were attracted by the yields on 10-year Japanese government bonds. Also, Fed Chairman Powell’s testimony on the day may put the AUD/USD bulls in doubt. Investors will likely find the tapering clues and rate hike from the speech. Get FREE Forex Signals Now! AUD/USD price technical analysis: 20-SMA remains the key The AUD/USD price gained beyond the 0.7300 handle as the bulls found some traction near the 20-period SMA on the 4-hour chart. The next key hurdle is 200-SMA around 0.7330 area that may test the bulls’ strength. The next resistance levels are at 0.7350 followed by 0.7400. On the flip side, breaking below the 20-period SMA at 0.7280 may lead towards the horizontal level of 0.7230. The average daily range for the pair is 67% so far which indicates a volatile market environment. However, the volume does not support the bulls as the volume for the last few bars was too thin to justify the surge of more than 30 pips. 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 Bitcoin Price Prediction: BTC Stuck Between The 100 and 200-Day SMAs Nancy Lubale 1 year AUD/USD gains on better retail sales data. China's sluggish investor sentiment and dismal GDP projection may weigh on the Aussie. The rise in US yields and Powell's testimony may question the Aussie bulls. The AUD/USD price traded up 0.34% at 0.7305 after earlier data showing Australian retail sales decreased 1.7% from the previous month. Australia's Retail Sales for August improved from -2.7% to -1.7% from -2.5% expected. The Industrial Profits in China were down 10.1% YoY versus 16.4% expected. -Are you looking for automated trading? Check our detailed guide- In addition to mixed data from Australia and China, sluggish investor sentiment… 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.