AUD/USD Rebound from 200-DMA, Now Eyeing 0.7300 for Further Recovery
Despite of disappointing Chinese economic data over the weekend, the AUD/USD pair zoomed from opening lows near 0.7250 to currently trade at day's peak level of 0.7290.
Data released on Saturday showed Chinese industrial production printed a dismal growth of 6.0% as against 6.5% expected and 6.8% recorded year ago. Retail sales figures for the month of April also disappointed by printing +10.1% y-o-y growth as compared to 10.6% forecasted and 10.5% in the previous month. The pain did not stop there, as the Fixed Asset Investment declined to 10.5% vs 10.7% the prior month and 11.0% consensus estimates.
The AUD/USD pair has rebounded from 200-day SMA, showing the relevance of the very important moving average. However, in order to extend the recovery the pair needs to build on to the strength during Asian session.
Technical levels to watch
From current levels move above 0.7300 handle might now face immediate resistance near 0.7315-25 region, which if cleared has the potential to boost the pair further towards 0.7375-80 horizontal resistance.
On the flip side, 200-day SMA near 0.7260 remains immediate support to watch for. Only a sustained weakness below day’s through level near 0.7250 would negate the possibilities of any further recovery, dragging the pair towards 0.7220-10 support area.