• 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
