FxWirePro: AUD/USD struggles to extend gains, poor China Q4 GDP data caps upside

AUD/USD chart on Trading View used for analysis

• AUD/USD edged higher on early Monday's trade, rose around 20 pips on the back of an above-forecast China industrial production data.
   
• China's industrial production rose to 5.7 percent year-on-year in December, a big beat on forecast of 5.3 percent.
   
• However, the major is struggling to extend gains on poor China's Q4 GDP print, which came in at the lowest level since early 2009.
   
• China's Q4 GDP came at +6.4% y/y, inline with estimates, down from 6.5% previous. The q/q reading for Q2 stood at +1.5% vs +1.5% expected and +1.6% last. 
   
• PBOC and the Chinese government are unlikely to introduce a flood-like stimulus to support the ailing economy and investment is likely to struggle to accelerate from its current pace.
   
• AUD/USD trades with a neutral bias on the daily charts, major trend remains bearish.
   
• Price action is holding support at 21-EMA, break below to see further weakness. Break above 110-EMA required for upside.

Support levels - 0.7154 (21-EMA), 0.7115 (20-DMA)

Resistance levels - 0.7178 (5-DMA), 0.7219 (110-EMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.