AUD/USD Opens on a Bearish Note Amid the China Data Dump and Decreased Retail Sales
The AUD/USD pair opened on a bearish note after the mixed China data dump.
The pair opened around 0.7700 early Monday, as the data was released from China’s fourth-quarter (Q4) GDP and the December Industrial Production improved, while Retail Sales missed the expected forecast.
China’s Q4 GDP grew to 6.5% YoY from 6.1% although it eased on the QoQ basis to 2.6% vs the 3.2% that was forecasted and the 2.7% prior to that. Also increasing was the Industrial Production for December which saw an increase past the 6.9% which was forecasted to 7.3% YoY. In comparison, Retail Sales saw a decline as it dropped to 4.6% MoM which was below the 5.0% from previous readouts and 5.5% market consensus. So far for 2021, retail sales have fallen -3.9% YoY.
AUD/USD is trading with a weak technical bias, price action has slipped below 200H MA and ‘Bearish Divergence’ on the daily charts further adds to the bearish bias on the pair. Currently, the pair is holding support at 21-EMA and a break below will see more weakness. The next major support aligns at 55-EMA at 0.7511.
The last swing low price was at 0.76721 and the last swing high was at 0.78100.