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AUD/USD: 45 pip knee jerk rally post China GDP

FXStreet (Guatemala) - AUD/USD was volatile on the back of the Chinese GDP for Q3. The data arrived as 6.9% Y/Y beating expectations of 6.8%, but comes below the previous of 7% Y/Y and as the lowest level since the start of the financial crisis.

AUD/USD was trading circa 0.7240 below the 200 SMA on the hourly chart with the 20/200 bearish cross taking shape at the start of the week. The price rallied about 45 pips, but settled back after the knee jerk reaction to the upside and now socialites flat for the session at time of writing.

AUD/USD levels

Technically, AUD/USD's performance on the 0.73 handle was short-lived, failing at 0.7380 the first time around and then only able to reach 0.7360 on a recovery attempt towards the end of last week. The 0.7385 Fib retracement guards 0.7402 2014-2015 downtrend and August highs of and the 0.7439 August high. To the downside, a break of the 0.72 handle puts the 55 DMA under pressure at 0.7179 ahead of 0.7146 and the 20 DMA. A break of here opens the October lows and start of the short-term recovery from 0.7000.

Chinese Q3 GDP comes better-than-expected

China's Q3 GDP came in at 6.9% vs (Q3) YoY expectations of 6.8% and a previous of 7.0% (psychological threshold up until now), while GDP seasonally adjusted (Q3) QoQ stood at 1.8% vs 1.7% exp, 1.7% prior.
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China's NBS Sheng: Slight drop in Q3 GDP partly due to weak global economy

China's National Bureau of Statistics spokesman Sheng Laiyu, following the 6.9% Q3 GDP YoY, said China still showing growth of around 7%, adding that pressure to cut overcapacity mounted, and that the slight reduction in GDP Growth was partly due to weak global economy.
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