FxWirePro: AUD/USD dips on soft China data

• AUD/USD dipped  on Monday as investors digested weak Chinese retail sales and industrial production data.

• Chinese Industrial output rose 4.8% year on year in November, National Bureau of Statistics (NBS) data showed on Monday, marking the weakest pace since August 2024. Growth slowed from 4.9% in October and fell short of the 5.0% increase forecast..  

• Retail sales, a key gauge of consumption, rose just 1.3%, marking their weakest pace since December 2022, when the world’s second-largest economy lifted pandemic restrictions. The outcome was well below October’s 2.9% growth and forecasts for a 2.8% increase.

•Australia's labor government is expected to unveil its mid-year budget update on Wednesday.

• On the global front, markets are now focused on U.S. November non-farm payrolls due Tuesday and CPI inflation on Thursday, both of which could drive fresh volatility in AUD/USD.

• Immediate resistance is located at 0.6691(23.6%fib), any close above will push the pair towards 0.6711(23.6%fib).

• Support is seen at 0.6604 (38.2%fib) and break below could take the pair towards 0.6566(SMA 20).

 Recommendation: Good to buy  around 0.6620, with stop loss of 0.6550 and target price of 0.6700