AUD under pressure following weak Chinese data
Christophe Chevalier June 15, 2020 6:51 AM
China's industrial production grew 4.4% on year in May, below the +5.0% expected and puts AUD under pressure.
Australia remains closely linked to Chinese economy and AUD is impacted by any news from China. But this morning, they were pessimistic. Indeed, official data showed that China's industrial production grew 4.4% on year in May, below the +5.0% expected while retail sales fell 2.8%, more than -2.3%.
From a technical point of view, on a 30-min chart, AUD/USD is under pressure and is capped by its declining 50-period moving average (in blue) and by a declining trend line as the intraday RSI stands within its selling area. Readers may therefore consider the potential for further weakness below horizontal resistance at 0.6870. The nearest threshold would be set at horizontal support at 0.6755 and a second one would be set at previous overlap at 0.6720 in extension.
Source: TradingView, GAIN Capital
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.