AUD/USD Extends Buying – Optimization on Trade Deal Plays
The AUD/USD currency pair still found on the bullish track, as China’s Industrial Production and Retail Sales rose to a 3-month high. Although the quarter-on-quarter (QoQ) figure of China’s 3rd-quarter (Q3) Gross Domestic Product (GDP) reached 1.5% forecast, YoY numbers inched below 6.1% expectations to 6.0%. However, September’s Retail Sales matched an upbeat estimate of 7.8%, and the Industrial Production (IP) for the same month grew past-5.0% market consensus to 5.8%.
China’s GDP growth slows to 6% in Q3 while Industrial Production betters estimates, and AUD keeps gains.
Meanwhile, the market sentiment spoiled due to the planned tariffs by the US on the European Union goods kick-on today. It should also be noted that the negative comments regarding trade from the White Huse Economic Adviser Larry Kudlow and the mixed messages from the Reserve Bank of Australia Governor increasing the market trouble due to the lack of major news from the trade and Brexit front of late.
After seeing the initial reaction on the data from the key customers, Australian traders will focus on the final round of speeches by the Federal Reserve officials ahead of the blackout before the next policy decision.
On the technical side, prices need to rally past-100-day Exponential Moving Average (EMA) level close to 0.6855 before proceeding further towards 0.6900 round figure. If not then 0.6810/05 will be the key level to watch as a bearish break of the same will recall 0.6780 and 0.6755/50 rest-points back to the chart.
Daily Support and Resistance
S3 0.6697
S2 0.6755
S1 0.6791
Pivot Point 0.6812
R1 0.6848
R2 0.687
R3 0.6927
AUD/USD – Trade Plan
Consider staying bullish over 0.6815 today as the Aussie can target 0.6860, the 161.8% Fibo level.
Good luck!
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