AUD/USD extends pullback from six-month-old resistance on softer China data – Crypto News – Crypto News
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Bears flex muscles to revisit 0.6850 support Bears flex muscles to revisit 0.6850 support

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AUD/USD extends pullback from six-month-old resistance on softer China data – Crypto News

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3 years ago

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  • AUD/USD renews intraday low during the first negative day in three.
  • China Retail Sales, Industrial Production flashed downbeat figures for November.
  • The US Dollar pares post-Fed losses even as market sentiment dwindles ahead of key central bank announcements.
  • US Retail Sales, risk catalysts are also important for fresh impulse.

AUD/USD takes offers to refresh intraday low near 0.6850 as downbeat statistics from China favor the Aussie pair’s technical move during early Thursday. That said, the quote snapped a two-day uptrend while posting mild losses near the highest levels in three months, marked on Tuesday.

China’s Retail Sales growth eased to -5.9% in November versus -3.6% expected and -0.5% prior while the Industrial Production came in at 2.2% compared to 3.3% market forecasts and 5.0% previous readings. The disappointing data from Australia’s largest customer joined the recent rebound in the US Dollar ahead of key central bank announcements to weigh on the AUD/USD prices.

Earlier in the day, Australia’s Consumer Inflation Expectations dropped to 5.2% for December versus 5.7% expected and 6.0% prior while a jump in Employment Change and stable Unemployment Rate allowed the Australia Dollar (AUD) to stay firmer.

It should be noted that the market’s reassessment of the fed The verdict, suggesting a 50 bps rate hike and readiness to hold the rate higher for a longer period, could also be cited as a reason for the US Dollar’s latest rebound. That said, the US Dollar Index (DXY) pares recent losses around 103.75 while bouncing off one-month-old support, as well as the six-month low.

While portraying the mood, the S&P 500 Future remains directionless but the US 10-year Treasury bond yields probe a two-day downtrend near 3.50%. Further, the two-year counterpart also extends recovery from the monthly low while printing the first daily positive near 4.25% in three.

Looking forward, monetary policy announcements from the Swiss National Bank (SNB), European Central Bank (ECB) and the Bank of England (BOE) will be important to predict the market’s intraday directions. Should the central banks retreat from their hawkish moves, the US Dollar may witness further upside and can weigh on the AUD/USD prices.

technical analysis

Although the downward-sloping resistance line from June, near 0.6880 by the press time, triggered the AUD/USD pair’s U-turn from a multi-day high, November’s peak surrounding 0.6800 holds the key to welcome bears.

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