FxWirePro: AUD/USD extends gains above 0.75 handle, risk-on market mood and strength in commodity markets buoy Aussie
FxWirePro: AUD/USD capped at 21-EMA, breakout required for further gains
AUD/USD chart - Trading View
AUD/USD was trading 0.11% lower at 0.7272 at around 07:00 GMT, Aussie depressed after China's industrial profit growth slows for sixth month in August.
Data released by China's statistics bureau showed on Tuesday that profits at China's industrial firms grew at a weaker pace in August from a year earlier, slowing for a sixth consecutive month.
China's Industrial Profits rose 10.1% on year to 680.3 billion yuan ($105 billion) last month compared with a 16.4% gain in July.
Manufacturers struggled with high commodity prices, COVID-19 outbreaks and shortages of some key components.
For the January-August period, industrial firms' profits rose 49.5% year-on-year to 5.61 trillion yuan, slowing from a 57.3% increase in the first seven months of 2021.
Further, liabilities at industrial firms rose 8.4% on an annual basis at end-August, up from 8.2% growth as of end-July.
Aussie depressed as doubts over the economy's post-pandemic recovery eclipsed any optimism over an improvement in Sino-U.S. relations.
Technical bias for the pair remains bearish as long as price remains capped below 21-EMA resistance.
5-DMA is immediate support at 0.7266. Break below will see test of 0.7220 (Sept lows) ahead of 200-week MA at 0.7212.