12 Aug 2015
AUD/USD: Recovery mode intact near 0.7250 despite poor China data
FXStreet (Mumbai) - The latest series of below estimates China economic data had little impact on the tepid recovery seen in the Aussie from fresh multi-year lows, keeping AUD/USD near the mid-point of 0.72 handle.
AUD/USD drops from 0.7440 levels
Currently, the AUD/USD pair trades -1.14% lower at 0.7328, clinging to 0.73 handle. The AUD/USD pair attempts a weak recovery largely on short-covering as markets view the latest PBOC yuan devaluation triggered sell-off to be overdone and prefer to close their AUD shorts gradually.
Hence, the much awaited Chinese macro releases did not deter the minor rebound in the Aussie. Combined output from China's mines, manufacturers, and utilities rose 6.0% y/y in July, after a 6.8% rise was recorded for the month of June.
Further data released by the NBS showed fixed asset investment rising 11.2% year-to-date compared with the same period a year ago in July, and retail sales rising 10.5% year-on-year in July, both missing forecasts.
Earlier in Asia, the Aussie was hammered to fresh cycle lows at 0.7217 levels after the PBOC lower the yuan reference against the US dollar by 1.6% for the second time in two consecutive days.
China remains Australia's biggest trading partner. With the devaluation of the Chinese currency, Chinese companies will have less purchasing power to purchase products from Australia.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7326 (Today’s High) levels, above which gains could be extended to 0.7367 (July 1 High). On the flip side, support is seen at 0.7217 (Today’s Low) levels from here it to 0.7200 (2009 levels).
AUD/USD drops from 0.7440 levels
Currently, the AUD/USD pair trades -1.14% lower at 0.7328, clinging to 0.73 handle. The AUD/USD pair attempts a weak recovery largely on short-covering as markets view the latest PBOC yuan devaluation triggered sell-off to be overdone and prefer to close their AUD shorts gradually.
Hence, the much awaited Chinese macro releases did not deter the minor rebound in the Aussie. Combined output from China's mines, manufacturers, and utilities rose 6.0% y/y in July, after a 6.8% rise was recorded for the month of June.
Further data released by the NBS showed fixed asset investment rising 11.2% year-to-date compared with the same period a year ago in July, and retail sales rising 10.5% year-on-year in July, both missing forecasts.
Earlier in Asia, the Aussie was hammered to fresh cycle lows at 0.7217 levels after the PBOC lower the yuan reference against the US dollar by 1.6% for the second time in two consecutive days.
China remains Australia's biggest trading partner. With the devaluation of the Chinese currency, Chinese companies will have less purchasing power to purchase products from Australia.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7326 (Today’s High) levels, above which gains could be extended to 0.7367 (July 1 High). On the flip side, support is seen at 0.7217 (Today’s Low) levels from here it to 0.7200 (2009 levels).