AUD/USD sticks to dismal Chinese data-led weakness, but finds some support near mid-0.7000s

   “¢   Weaker than expected Chinese industrial output data prompts some fresh selling.
   “¢   Rebounding US bond yields revive USD demand and add to the downward pressure.

The AUD/USD pair maintained its heavily offered tone through the mid-European session, albeit has managed to hold its neck above mid-0.7000s.

The pair failed to capitalize on the recent positive momentum and once again faced rejection near the 0.7100 handle in reaction to sluggish Chinese data. In fact, industrial production growth in the world’s second-largest economy fell to the slowest pace in 17 years for the first two months in 2019 and prompted some aggressive selling around the China-proxy Australian Dollar.

Dismal Chinese data weighed on the global risk sentiment and further drove flows away from perceived riskier currencies – including the Aussie. Adding to this, a goodish rebound in the US Treasury bond yields helped revive the US Dollar demand and aggravated the bearish pressure surrounding the major.  

The intraday downward trajectory now seems to have paused and the pair found some support ahead of mid-0.7000s amid initial signs of stability in equity markets, though absent relevant market moving economic data might keep a lid on any meaningful recovery attempt.

Technical levels to watch