AUD/USD finished last week near 0.7170, close to 4-week low of 0.7150 established on Friday after climbing steadily throughout the week, but the pair changed course after Chinese data on Friday came in poorly, with Chinese Retail Sales climbed by 8.1% in November, slipping from the previous 8.6% and missing the expected 8.8%. Industrial Production in China also missed, printing at 5.4% vs the expected 5.9%. Saturday also saw China’s Housing Price index, which came in at 9.3% vs the previous 8.5%, which could help keep the Aussie propped up in early week trading with no meaningful data on the charts.
The pair spent the last trading session of the week hovering around the 61.8% retracement of its 0.7020/0.7393 rally at 0.7160, an immediate short-term support and technically poised to extend its decline, as in the daily chart, technical indicators failed to extend their previous advances around their midlines, resuming their decline afterwards. The 20 DMA in the mentioned chart heads south around the 38.2% retracement of the mentioned rally at around 0.7250, while the pair was contained by a bearish 100 DMA ever since the week started. In the shorter term, and according to the 4 hours chart the risk is also skewed to the downside, as the pair trades below all of its moving averages, with the 20 SMA accelerating south around 0.7210 as technical indicators resumed their declines following a modest upward correction within negative levels.
Support levels: 0.7150 0.7110 0.7065
Resistance levels: 0.7210 0.7255 0.7300