FxWirePro: AUD/USD renews intraday low on downbeat China data, ignores solid Australian Employment data

Chart - Courtesy Trading View 

AUD/USD was trading 0.51% lower on the day at 0.6828 at around 04:35 GMT. The Aussie ignores solid Australian Employment data as poor China data weighs.

Data released earlier on Thursday showed China’s Retail Sales slumped to -5.9% in November versus -3.6% expected and -0.5% prior.

China's Industrial Production came in at 2.2%, also missing market forecasts at 3.3% and compared to 5.0% previous readings. 

The disappointing China data joined the recent rebound in the US Dollar ahead of the key central bank announcements to weigh on the AUD/USD prices.

The major failed to cheer solid Australian Employment data. The Australian economy has generated additional 64K jobs vs. the expectations of 19K and former additions of 32.2K. 

Further, Australia Consumer Inflation Expectations dropped to 5.2% for December versus 5.7% expected and 6.0% prior.

On the other side, the DXY hit six-month low after the Fed announced a 50 bps rate hike. Shift in the Fed's current monetary policy approach triggered volatility.

Technical Analysis:

- AUD/USD shows 'Hammer' formation on the previous session's candle

- GMMA indicator shows major and minor trend are bullish

- Momentum is bullish and volatility is high and rising

- Price action is above cloud, but Chikou span is biased lower

Support Level: 0.6816 (5-DMA), Resistance Level: 0.6897 (200-DMA)

Summary: AUD/USD struggles at 200-DMA. Technical indicator support upside. Watch out for decisive break above for upside continuation.