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China CPI Data Pushes AUDUSD Higher

AUDUSD got some boost from the Chinese CPI data. According to National Bureau of Statistics Consumer Price Index of China rose to 2.5% in January beating the economist’s estimates. However in monthly terms the Index rose 1% in January beating the economist’s expectation of a .7% increase. As China is Australia’s biggest trading partner so any growth in China will definitely strengthen AUD. On the other hand US Dollar weakened after the Census Bureau yesterday resported weak Retail sales data and Jobless data. 

The pair found resistance at .9038 and currently consolidating between the two contracting trend lines. As depicted from the ascending triangle the pair seems like it will break the resistance level and continue its uptrend. Goldman Sachs Group in its forecast for AUDUSD said that the pair might drop to .8800 within 6 month or .8500 this year.