AUD/USD Sideways Channel – Investors Eye a Breakout
Arslan Butt • 1 min read
AUD/USD is trading unchanged despite the weak and horrible factory activity and consumer spending data. The AUD/USD pair currently trades around 0.6900.
Chinese consumer spending, as represented by retail sales, increased 7.5% year-on-year during August, dropping below the expected figure of 7.9% by a large margin and dropping from the previous month’s issue of 7.6%.
Meanwhile, industrial production growth also decreased to 4.4% during the Augst after a 4.8% surge during the month of July. By the way, the markets were expecting a rise of 5.2%. Moreover, the recession in factory activity is not so surprising after the United States and China trade anxieties re-intensified during August.
Therefore, the depressive risk assets due to the attacks may increase the losses during the European trading hour, sending the AUD currency in the bearish track below 0.6861. As of writing the futures on the S&P 500 SPX is showing a 0.65% decline.
On the technical side, the AUD/USD currency pair seems late for a pullback, that it didn’t hit the key Fibonacci retracement level of 0.6880 during the previous 3 trading days.
Daily Support and Resistance
Pivot Point 0.6878
The idea is to stay bullish above 0.6910 and bearish below 0.6870 to target 30/40 pips on both sides.