AUD is still supported by China
Christophe Chevalier August 10, 2020 2:07 AM
Official data showed that China's CPI grew 2.7% on year in July (vs +2.6% expected). Australian economy remains closely linked to China.
This morning, official data showed that grew 2.7% on year in July (vs +2.6% expected), while PPI dropped 2.4% (vs -2.5% expected). Australian economy remains closely linked to China. Tomorrow, July Australian NAB Business Confidence will be expected at -1.0.
From a technical point of view, on a daily chart, AUD/USD remains supported by an internal rising trend line and by its rising 50-day moving average (in blue). Readers may therefore consider the potential for further advance above horizontal support at 0.7000. The nearest threshold would be set at 2019 top at 0.7300 and a second one would be set at December 2018 high at 0.7390 in extension.
Source: TradingView, GAIN Capital
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