|   Technicals


  |   Technicals


FxWirePro: AUD/USD capped at 21-EMA, breakout required for further gains

AUD/USD chart - Trading View 

AUD/USD was trading 0.11% lower at 0.7272 at around 07:00 GMT, Aussie depressed after China's industrial profit growth slows for sixth month in August.

Data released by China's statistics bureau showed on Tuesday that profits at China's industrial firms grew at a weaker pace in August from a year earlier, slowing for a sixth consecutive month.

China's Industrial Profits rose 10.1% on year to 680.3 billion yuan ($105 billion) last month compared with a 16.4% gain in July.

Manufacturers struggled with high commodity prices, COVID-19 outbreaks and shortages of some key components.

For the January-August period, industrial firms' profits rose 49.5% year-on-year to 5.61 trillion yuan, slowing from a 57.3% increase in the first seven months of 2021.

Further, liabilities at industrial firms rose 8.4% on an annual basis at end-August, up from 8.2% growth as of end-July.

Aussie depressed as doubts over the economy's post-pandemic recovery eclipsed any optimism over an improvement in Sino-U.S. relations.

Technical bias for the pair remains bearish as long as price remains capped below 21-EMA resistance.

5-DMA is immediate support at 0.7266. Break below will see test of 0.7220 (Sept lows) ahead of 200-week MA at 0.7212.

  • Market Data

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.