FxWirePro: AUD/USD extends weakness, mixed China data fails to impress

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading 0.28% lower on the day at 0.6729 at around 05:25 GMT

Previous Week's High/ Low: 0.6894/ 0.6761

Previous Session's High/ Low: 0.6787/ 0.6681

Fundamental Overview:

AUD/USD resumes weakness after the release of the mixed Chinese economic data.

China's quarterly Gross Domestic Product (GDP) has landed at -2.6%, lower than the prior release of 1.3% and the expectations of -1.5%. 

On an annualized basis, GDP has tumbled to 0.4% from the consensus and the former figure of 1% and 4.8% respectively.

That said, the Industrial Production data has improved to 3.9% vs. 0.7% reported previously but remains lower than the estimates of 4.1%.

Further,  Retail Sales printed at 3.1% much higher than the forecast of 0% and the prior print of -6.7%.

Technical Analysis:

- AUD/USD trades below major moving averages which are trending lower

- Price action is well below cloud and Chikou span is biased lower

- Momentum is bearish and volatility is high and rising

- ADX and MACD support further downside in the pair

Major Support and Resistance Levels:

Support - 0.6693 (Lower BB), Resistance - 0.6743 (5-DMA)

Summary: AUD/USD poised for further downside. The pair is on track to refresh multi-year lows.