AUD under pressure following weak Chinese data

Australian flag
Australia remains closely linked to Chinese economy and AUD is impacted by any news from China. But this morning, they were pessimistic. Indeed, official data showed that China's industrial production grew 4.4% on year in May, below the +5.0% expected while retail sales fell 2.8%, more than -2.3%.

From a technical point of view, on a 30-min chart, AUD/USD is under pressure and is capped by its declining 50-period moving average (in blue) and by a declining trend line as the intraday RSI stands within its selling area. Readers may therefore consider the potential for further weakness below horizontal resistance at 0.6870. The nearest threshold would be set at horizontal support at 0.6755 and a second one would be set at previous overlap at 0.6720 in extension.

Source: TradingView, GAIN Capital

Related tags: AUD Forex Forex

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