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AUDUSD : Rising After China's Better than Expected Data, But Gains Are Capped

AUDUSD : Daily Chart

AUDUSD trying to rise now on the daily chart although it continues to trade within sideways pattern. There seems a rising support trend line which now providing support to the pair therefore it is expected to surge above the resistance at .8828. However the moving average trend on the chart is showing that the pair will continue to follow downtrend. So if it is able to hold gains above the resistance at .8828, the next nearest resistance it may find at .8925. 

The gains might have come after the data showed that the industrial production in China rose at an annualized rate of 8% last month, better than the economist’s expectations for a 7.5% rise. A separate report showed that China’s economy grew at an annual rate of 7.3% in the three months to September which is slightly higher than the expected reading of 7.2% but slowing from the 7.5% in the second quarter. On the other hand, the Reserve Bank of Australia reiterated that Australian dollar is still high and might hinder the growth in the economy. China is the biggest trading partner of Australia, thus better than expected data from China might have provided some support.

AUDUSD : 4 Hour Chart

Although this support should be for short term and the gain seems capped.On the 4 hour chart, we can see that the pair is consolidating within a symmetrical triangle trend and might break out or breakdown from the resistance or support trend line respectively. However the bias is towards the downside. So if the pair breaks above the resistance trend line, the next nearest resistance is at .8856 and if it breaks down below the rising support trend line, the next nearest support it may find at .8692.