AUDUSD Lower on Weak Chinese Data
AUDUSD trades 0.29% lower at 0.6776 after the Westpac Consumer Confidence climbed from previous -4.1% to 3.6% in August. China Retail Sales (YoY) came in at 7.6% below expectations of 8.6% in July, the Industrial Production (YoY) registered at 4.8%, below expectations (5.8%) in July.
AUDUSD consolidates at 0.6776 following a bullish hammer formation the previous week that suggests that the pair has found a strong support at the recent low of 0.6676. Bears are in control for the medium term but the pair managed to create a strong support zone at 0.6743. On the downside first support now stands at 0.6742 yesterday’s low, a level that if breached will enhance the slide toward the 0.67 round figure. On the upside immediate resistance stands at 0.6763 today’s high while more offers will emerge at 0.6928 the 50 hour moving average. The pair is exiting from oversold levels as implied by the RSI in the daily chart which stands at 32.55, so a sharp rebound above mid 0.68 can’t be ruled out.