FxWirePro: AUD/USD extends gains, Aussie unfazed by weaker-than-expected China Q1 GDP

AUD/USD chart - Trading View 

Fundamental Overview:

Aussie remained bid despite weaker-than-expected China Q1 GDP. Renewed hopes for coronavirus treatment support the antipodeans. 

STAT news report that Gilead Sciences' experimental drug 'Remdesivir' is seeing rapid recoveries in fever and respiratory symptoms associated with coronavirus. 

On the data front, China registers first GDP contraction since 1992. Retail sales and industrial production for March also showed contraction. 

Data released earlier on Friday showed that Q1 GDP contracted 6.8% in annualized terms versus expectations for a 6.5% decline.

Retail Sales tanked 15.8% y/y in March compared to expectations for a 10% decline. Industrial Production also contracted by 1.1% but bettered estimates of a 7.3% drop. 

Technical Analysis:

AUD/USD was extending previous session's gains and trading 0.50% higher on the day at 0.6358 at around 03:50 GMT.

The pair has bounced off 200H MA on the hourly charts and 'Hammer' formation on Thursday's candle raises scope for upside.

GMMA shows shift in trend on the 4-hourly charts. Stochs and RSI also show bullish momentum. However, Stochs are at overbought levels raising scope for pullback.

The pair is currently hovering around 55-EMA resistance at 0.6362. Decisive break above finds next major hurdle at daily cloud.

Break above cloud will confirm further upside. On the flipside, break below 21-EMA resistance negates any bullish bias.

Major Support Levels: 0.6276 (50% Fib), 0.6250 (21-EMA)

Major Resistance Levels: 0.6362 (55-EMA), 0.6455 (61.8% Fib)

Guidance: Stay long on breakout at 55-EMA, place stops at 0.6275, target 0.6455.