Fan Yang
1
All posts from Fan Yang
Fan Yang in Fan Yang,

AUD/USD Higher After China Data and RBA Minutes

The AUD/USD is showing strength in the 10/21 Asian session. We had some fundamental factors that could be related.

1) China GDP q/y (Q3): 7.3%, Forecast: 7.2%, Previous 7.5%
2) China Industrial Production y/y (Sept.): 8.0%, Forecast: 7.5%, previous: 6.9%
3) RBA Meeting minutes discussed the usual, global growth concerns, and the fact that the AUD is still high on historical standards. 

The Chinese GDP data was in-line with expectations, though maybe slightly on the upper range of projections. The RBA minutes did not fire any bullets. But the industrial production data for China could be seen as slightly positive.

AUD/USD 4H Chart 10/21

(click to enlarge)

The AUD/USD rallied after the releases, but is still within a triangle. It did however show an outside bar in the 4H chart, which suggests there is some near-term bullish bias towards the triangle resistance. A break above 0.8830 should break the triangle. Then, if price can hold above 0.88 we should see further bullish correction first toward 0.89.

If price falls back below 0.88, the triangle is still holding, and we will need to see more price action to assess the outlook in a currently sideways AUD/USD market.