FxWirePro: AUD/USD opens the week on a bearish note, Aussie unimpressed amid mixed China data dump
AUD/USD chart - Trading View
AUD/USD was trading 0.11% lower on the day at 0.7692 at around 03:45 GMT, bias lower.
Aussie was largely unimpressed after mixed China data dump. Dwindling risk also keeps the pair suppressed.
Data released earlier on Monday showed China’s Q4 GDP and December Industrial Production improved, but Retail Sales missed expectations.
China’s Q4 GDP grew from 6.1% to 6.5% YoY but eased on QoQ basis to 2.6% versus 3.2% forecast and 2.7% prior. Further, Industrial Production for December rose past-6.9% expected to 7.3% YoY.
However, Retail Sales dropped to 4.6% MoM, below 5.0% previous readouts and 5.5% market consensus. For the year retail sales fell -3.9% YoY.
Risk weakens amid cautious sentiment ahead of new government in the US. Also, the coronavirus woes and doubts over China’s economic improvement weigh on the upside.
AUD/USD trades with a weak technical bias. Price action has slipped below 200H MA and 'Bearish Divergence' on the daily charts adds to the bearish bias.
The pair is holding support at 21-EMA. Break below will see more weakness. Next major support aligns at 55-EMA at 0.7511.