- AUD/USD snaps two-day winning streak, extends pullback from 0.7016.
- China’s second-quarter (Q2) GDP crosses 9.6% forecast with 11.5%.
- A two-week-old ascending trend line, 200-bar SMA offer strong support.
- 0.7040 adds to the upside barriers ahead of June month’s top.
AUD/USD declines to 0.6990 during the early Thursday. In doing so, the pair ignores upbeat prints of China’s Q2 GDP, as well as June month Industrial Production. The reason could be traced from weaker than forecast Retail Sales data.
Read: Breaking: China’s GDP rebounds 3.2% YoY in Q2 vs. +2.1% expected, AUD/USD retakes 0.70
With the pair’s repeated failures to cross 0.7000, backed by mixed data, the pair sellers are targeting the late-June tops near 0.6975, for now. However, an upward sloping trend line since June 30, at 0.6935 now, could challenge the pair’s further weakness.
In a case where the quote remains weak past-0.6935, 200-bar SMA level of 0.6920 and 0.69000 round-figure will be the key as they holds the gates for the pair’s further downside towards 0.6775 figures comprising June 15 bottom.
Alternatively, a horizontal area around 0.7040 becomes additional resistance for the pair beyond 0.7000, a break of which will help the bulls to confront 0.7065 numbers for the north, including June high.
AUD/USD four-hour chart
Trend: Pullback expected
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