It’s all about China at the moment and after the US-China ‘phase one’ trade deal, there looks like there is more positive news that could spark markets.

We’ve just seen the latest industrial production data out of China and the yearly figure showed a solid beat, coming in at 6.2% vs 5.0%.

The AUD/USD has already responded positively and is pushing higher. This is a great start to the trading week for the bulls, who have been flush with positive sentiment in recent days. Not only did we hear about the trade deal, but we also had a positive election result in the UK in terms of a Brexit result. So clearly things are looking up at the moment.

At the same time, the Chinese data also showed an uptick in retail sales, while the unemployment rate remained steady.

The Aussie has really spiked higher on the back of the phase one trade deal, however, it quickly retraced to pull back under the 0.6900 level.

Looking to the rest of the week, there are a couple of key data point of interest for Aussie traders.

The main one is in-fact likely to be the employment report on Thursday. The RBA minutes are due for release, but it is unlikely that we’ll see any further details that we don’t already know.

However, the jobless rate is the all-important indicator that everyone is watching. As Lowe has tied his monetary policy outcomes to that statistic.

So if we see a fall, that would be a massive win for Lowe and the RBA and likely reduce the odds of a rate cut in February.

For the time being, we sit and watch the 0.6900 level. There is a decent chance we re-test that point on the back of today’s data. However, I would also say that would the obvious spot to look for a double top and a short position.