FxWirePro: AUD/USD breaks above 110-EMA amid modest USD weakness, Aussie shrugs off disappointing China data

Chart - Courtesy Trading View 

AUD/USD was trading 0.70% higher on the day at 0.6745 at around 09:35 GMT.

The US Dollar under renewed selling pressure amid rising bets for a less aggressive policy tightening by the Fed.

Fed fund futures are now pricing in a 91% chance of a 50 bps rate hike at the next FOMC meeting in December. 

Aussie largely ignores poor China data. Improvement in risk sentiment across markets also weighs on the dollar's safe haven appeal, pushing the pair higher.

China’s October Retail Sales YoY, declined sharply to -0.5% vs. 1.0% expected and 2.5% previous while Industrial Production YoY printed at 5.0% and 5.2% estimated and 6.3% prior.

Meanwhile, the Fixed Asset Investment YoY eased to 5.8% in October vs 5.9% expected and 5.9% last.

Focus now on the Empire State Manufacturing Index and Producer Price Index (PPI) for further impetus.

AUD/USD breakout above cloud has raised scope for further upside. 200-DMA at 0.6951 is next major bull target.