AUD/USD: bullish Chinese data gap being filled
China reported their industrial production data that was far stringer than expected given the current climate, rising 9.2% on a year in Nov vs 5.6% consensus and prior. Retails sales was also a positive for November with year on year expectations to come in at 11.1% while actual arrived 11.2% vs 11.0%.
Meanwhile, as early Asia gets going, the bullish gap is being filled to back below the 0.72 handle and fundamentals such as lower for longer oil and natural gas prices are a concern to the economy while the RBA came across more dovish than previous ahead of a likely Fed 'lift-off" this week. The RBA minutes will be out tomorrow.
Technically, Valeria Bednarik, chief analyst at FXStreet explained that the daily chart shows that the price extended its decline below its 20 SMA, while the technical indicators head sharply lower well below their mid-lines, in line with further declines. "In the 4 hours chart, the price is below its 200 EMA, while the Momentum indicator maintains a bearish slope below its 100 level and the RSI consolidates near oversold readings, all of which supports the longer term outlook."
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