FxWirePro: AUD/USD slips below 0.74 handle, Aussie depressed amid disappointing Chinese macro data and strong USD
AUD/USD chart - Trading View
- Major and minor trend are neutral
- Price action is above daily cloud, Chikou span is biased lower
- Oscillators are bullish, Stochs are at oversold, scope for bearish rollover
- Wide and expanding, suggest high volatility
The Chinese data released earlier in the day showed GDP grew 0.2% quarter-on-quarter and 4.9% year-on-year in the third quarter of 2021.
Industrial production grew 3.1% year-on-year, retail sales grew 4.4% year-on-year in September and the unemployment rate was at 4.9%.
Support Levels: 0.7390 (5-DMA), 0.7352 (Cloud top), 0.7341 (55-EMA)
Resistance Levels: 0.7450 (38.2% Fib), 0.7478 (Sept high), 0.75
Summary: Traders spooked after China's Q3 GDP disappointed markets. On the other side, the US dollar remains on the front foot amid risk-aversion and rising Treasury yields.
AUD/USD poised for some weakness as overbought conditions likely to see some pullbacks as well. The pair is retreating after Doji formation on Friday's candle.
Price action has slipped below 110-EMA, scope for test of 55-EMA at 0.7341.