- AUD/USD keeps gains after China Industrial Production beats estimates.
- China’s Retail Sales growth missed estimates, while Fixed Asset Investment ticked higher.
- Risk-on signaled by stocks could power AUD/USD above 0.73.
AUD/USD remains on the hunt for a move above 0.73 following the release of an above-forecast China factory data.
Industrial production in the world’s second-largest economy rose 6.9% year-on-year for the second straight month in October, beating the expected gain of 6.5%. The Fixed Asset Investment rose 1.8% year-on-year in October versus 1.6% expected and 0.8% previous.
The aforementioned data are positive for China-sensitive currencies like AUD. So far, however, the Australian dollar hasn’t really moved, leaving the AUD/USD unaffected near the session high of 0.7295. The weaker-than-expected Retail Sales could be overshadowing the upbeat Industrial Production. Consumer spending, as represented by Retail Sales, rose 4.3% in October, missing the forecast of 5% and up from the preceding month’s 3.3% rise.
Looking ahead, the Aussie dollar could cross above 0.73, as the S&P 500 futures are gaining altitude on coronavirus vaccine optimism. According to Reuters, traders are expecting more good vaccine news as soon as this week from drugmaker Moderna, following the successful trial of Pfizer’s similar drug.
Technical levels
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