Forex Marketz Daily Forex News – Fully Markets Update
The AUD/USD Forex market was fairly steady this morning despite a softer patch of Chinese economic data.
Official Chinese data, released earlier, showed that industrial production rose 6.4 percent. This was well below both the 7.1 percent gain expected and June’s 7.6 percent print. Retail sales also missed. Sales rose, annually, 10.4 percent. Investors had expected to see a 10.8 percent increase after June’s 11 print.
The Australian dollar, the liquid China proxy thanks to Australia’s vast commodity export numbers with the world’s second-largest economy. However, in wake of the Chinese data, the Aussie barely reacted. The AUD did slip back very modestly in the direction of 0.7900.
The Aussie ignores Chinese Data for Other Factors
There are also other factors affecting the Australian dollar. Last week’s griping between Washington DC and North Korea appears to have calmed, a tad. Still the threat to Guam remains real.
Potential upside, for the Australian currency may be limited. The Australian central bank has been aggressively pointing out that it does not want to see its currency appreciate too much.
The Australian Dollar has spent the last couple of weeks retreating a bit. However, it still looks pretty sitting near a two-year high.
Technically speaking, the AUD is still trading well below a downtrend line from the two year peaks. The support at 0.7850 is still holding. For now, and the foreseeable future, it does appear that the trend line will be challenged anytime soon hinting that gains will be a bit limited in this Forex market.
