Com Dolls (AUD, NZD) Supported After Mixed Data from China
Commodity dollars such as the NZD, AUD, and CAD have turned bullish recently, helped by improved risk sentiment from better Chinese data, as well as softer US economic figures, which are weighing on the USD. Early this morning we had another round of economic data from China, such as Industrial Production, Retail Sales, Fixed Asset Investment and the Unemployment Rate.
The NZD/USD and AUD/USD exchange rates rose higher this week, indicating strength in the commodity dollars relative to the US dollar. The price surpassed most of the moving averages on the daily chart. This suggests a significant bullish momentum in the market. The 200-day Simple Moving Average (SMA), represented by the purple line on the chart, is now acting as support after the oscillations in the price action yesterday.
AUD/USD Chart Daily – Finding Support at the 200 SMA
AUD/USD currency pair saw an upward advance as the chart above shows, indicating strength in the Australian dollar against the US dollar. The pair traded within a 60-pip range yesterday, suggesting a period of consolidation or indecision in the market. Buyers were targeting the 0.67 level, which marks a key psychological and technical level of interest for market participants and the price momentarily broke above the 0.67 level before reversing back down, which could indicate resistance at this level or profit-taking by traders. Despite the reversal though, the 200-day Simple Moving Average (SMA) served as support, helping to stabilize the price.
Chinese Economic Data for April
Industrial Output (YoY):
- April: Industrial output increased by 6.7% compared to the same period last year, surpassing expectations of a 5.5% growth rate. This marks a significant acceleration from the 4.5% growth recorded in March.
Retail Sales:
- April: Retail sales saw a growth of 2.3% compared to the same period last year, falling short of expectations for a 3.8% increase. This is a slight decrease from the 3.1% growth recorded in March.
Fixed Asset Investment (YTD/Y):
- April: Fixed asset investment for the year-to-date (YTD/Y) grew by 4.2%, missing expectations for a 4.6% growth rate. This is a slight decrease from the 4.5% growth recorded in March.
AUD/USD Live Chart
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