FxWirePro: AUD/USD keeps gains as robust Chinese economic growth supports Australian dollar

• AUD/USD strengthened on Wednesday   as upbeat economic data from China provided support to Australian dollar.

• Data released on Wednesday showed that China's GDP grew by 5.4% year-on-year in the January–March quarter, the same pace as the fourth quarter, but surpassing analysts' forecast of 5.1%.

• Retail sales, a key indicator of consumption, rose 5.9% year-on-year in March, up from 4.0% in January-February, while factory output accelerated to 7.7% from 5.9% in the same period.

• The Reserve Bank of Australia skipped a rate cut this month, but markets have fully priced in a 25 basis point reduction to 3.85% in May.

•Australia's consumer price report, due next week, is expected to show core inflation (trimmed mean) easing to 2.8% from 3.2%, bringing it back within the RBA’s target range of 2–3% for the first time since late 2021.

• At GMT 05:40, the Australian dollar was trading higher 0.05% at $0.6347 against US dollar.

•  Immediate resistance is located at 0.6383(April 15th high), any close above will push the pair towards 0.6470(23.6%fib).

•  Support is seen at 0.6318(38.2%fib) and break below could take the pair towards 0.6253(March 11th 2 low).

 Recommendation: Good to buy around 0.6330 with stop loss of 0.6260 and target price of 0.6400