Weak Data out of China

Big Miss For Chinese Industrial Production: AUD/USD Under Pressure

Posted Friday, December 14, 2018 by
Rowan Crosby • 1 min read

It looks like the news out of China has gone from bad to worse with the latest industrial production figures coming in well below expectation.

Industrial production came in at 5.4% vs 5.9% expected.

Retail Sales were at 8.1% vs 8.8% expected.

We are already seeing some follow through in the AUD/USD and NZD/USD. Notably, both pairs were weak heading into the number.

This one might have the potential to run a bit given the climate at the moment and the fact we were weak in the lead in. There are a fair few eyes on this number today.


Aussie Outlook

The AUD/USD has now cracked the major level at 0.7200 and is looking like it wants to run to the most recent lows at the bottom of this range.

The Kiwi has been even weaker and is currently off -0.8%.

I suspect that if we do get a retracement back to the 0.7200, that might offer up a nice opportunity to be selling here.

AUD/USD – 240min.
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