Aussie Dollar Slides Down After China’s GDP News

The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Monday, decreasing the price of AUDUSD to less than 0.7825 following some key economic releases. The technical bias shall remain bullish because of a higher high in the ongoing upside move.

Technical Analysis

As of this writing, the pair is being traded around 0.7818.  A support can be noted around 0.7470, an immediate horizontal support ahead of 0.7400, the psychological number and then 0.7389, another trendline support as demonstrated in the given below chart.

On the upside, a hurdle can be noted near 0.7835, an immediate horizontal resistance level ahead of 0.7900, the psychological level and then 0.7949, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bullish as long as the 0.7389 support area is intact.

China GDP

China’s GDP rose 6.9 percent year on year in the second quarter of 2017, flat from the first quarter, official data showed Monday. The pace was slightly higher than previous market consensus of 6.8 percent and well above the government’s annual target of “around 6.5 percent.”

In the first half, the growth rate was also 6.9 percent, the National Bureau of Statistics (NBS) said in a statement. “The national economy performed within an appropriate range with more visible good momentum,” NBS said.

The quarterly pace came up from 6.7 percent for the first three quarters of 2016 and 6.8 percent for the final quarter of last year.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.

 

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Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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