“¢ Dismal Chinese macro data prompts some weakness at the start of a new trading week. “¢ A follow-through USD weakness helps limit losses and recover early lost ground. “¢ Subdued commodity prices might now keep a lid on any meaningful up-move. The AUD/USD pair reversed an early dip to an intraday low level of 0.7409 and turned higher for the third consecutive session. Today’s dismal Chinese macro data, showing that the second-quarter GDP growth slowed to 6.7% and industrial production fell to 6% y/y in May, triggered some initial weakness around the China-proxy Australian Dollar. However, a mildly weaker tone surrounding the US Dollar prompted some dip buying and helped the pair to build on last week’s goodish rebound from a one-week low level of 0.7360. Further gains, however, are likely to remain limited amid subdued action around commodity space, especially copper, which tends to undermine demand for commodity-linked currencies – like the Aussie. Moving ahead, today’s US economic docket, highlighting the release of the US monthly retail sales data and Empire State Manufacturing Index, will now be looked upon for some fresh impetus ahead of the RBA monetary policy meeting minutes, due for release during the early Asian session on Tuesday. Technical Analysis The pair found decent support near an important confluence region, comprising of 100-hour SMA and 38.2% Fibonacci retracement level of the 0.7484-0.7360 slide witnessed last week. With technical indicators on the said chart holding in positive territory, a follow-through buying beyond 61.8% Fibonacci retracement level now seems to pave the way for an extension of the positive momentum. Spot rate: 0.7431 Daily High: 0.7440 Daily Low: 0.7409 Trend: Bullish Support S1: 0.7411 (100-period SMA H1) S2: 0.7386 (S1 daily pivot-point) S3: 0.7360 (last Thursday’s swing low) Resistance R1: 0.7444 (R1 daily pivot-point) R2: 0.7489 (50-day SMA) R3: 0.7500 (psychological round figure mark) FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/NOK seen at 9.20 in the near term – Danske Bank FX Street 5 years "¢ Dismal Chinese macro data prompts some weakness at the start of a new trading week. "¢ A follow-through USD weakness helps limit losses and recover early lost ground. "¢ Subdued commodity prices might now keep a lid on any meaningful up-move. The AUD/USD pair reversed an early dip to an intraday low level of 0.7409 and turned higher for the third consecutive session. Today's dismal Chinese macro data, showing that the second-quarter GDP growth slowed to 6.7% and industrial production fell to 6% y/y in May, triggered some initial weakness around the China-proxy… 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.
