The AUD/USD is making repeated attempts at the strong sentiment region and resistance of 0.72.
0.72 Under Heavy Pressure
Looking at the AUD/USD 60 minutes chart above, we note that it had surged into it’s current region a few hours before. This suggests a bullish undertone and it has been hacking away at the resistance region. While the currency pair momentarily breached the resistance, the US market opening will probably bring some clarity to the price action.
It is prudent to note that our proprietary Price Action Bias Signals upgraded the AUD/USD to slight bullish before the start of the week. Members who had access to it and factored in this in their trading plan would be well positioned.
The yellow lines are the possible support and resistance regions in the immediate vicinity. Do note that price action in shorter time frames are often sentimental in nature.
Both the latest China GDP and Industrial Production came in better than expected. Gross domestic product is a measure of the monetary market value of all the goods and services produced. Therefore it is an overall measure of economic activity and health. GDP was 6.4% instead of 6.3% while Industrial Production reported an impressive 8.5% instead of 5.6%. Besides being a huge economy in the global scene that wields much influence, China is also a crucial trading partner of Australia. Therefore it is not unexpected that this development gave a boost to the sentiment towards the Australian Dollar.
Still to Come
Important economic events are still to come, including the Australian Employment data and US Retail Sales. Employment is a critical component of the economy as it leads to consumer spending. A low unemployment rate is an indicator of a healthy functioning economy. Retail sales is also important because as consumers spend, it translates to revenue and flows up stream as salaries, wholesales purchase, production orders and so on.
There are many more events and hence it is important to follow an economic calendar so that you can reduce the possibility of an unexpected development affecting your trading plan. Members can log in to their dashboards for an economic calendar and the latest premium analysis, including the Price Action Bias Signals is available there too.
Traders should always practice proper money management and seek to understand the underlying tones for the market.Don't miss out! Get your FREE forex trading ebook! We think you may be interested in these articles.