- Upbeat China's Nov data dump is a positive development for the Australian Dollar.
- Data from China released earlier today were as follows:
- November Industrial Production y/y 6.2% vs 6.1% expected and 6.1% last
- November Urban Investment YTD y/y came at 8.3% vs 8.3% expected and 8.3% last
- November Retail Sales y/y was 10.8% vs 10.1% expected and 10.0% last
- Aussie however, has remained relatively muted to upbeat Chinese data.
- AUD/JPY is trading largely unchanged on the day, a narrow 36 pip range till now.
- The pair is however, holding the break above channel top, and strong support is seen at 85.67 (5-DMA and channel top).
- Break below 85.67 could see downside gain traction, test of 84 levels then likely.
Our previous call (http://www.econotimes.com/FxWirePro-AUD-JPY-higher-on-upbeat-China-CPI-data-finds-major-resistance-at-8560-442861) has almost achieved TP1&2.
Recommendation: Book partial profits, raise trailing stops to 85.65, hold for upside.
