- The Aussie dollar after trading as low as 0.7360 vs the US Dollar found bids and started to trade higher.
- There was a bearish trend line formed on the hourly chart of the AUDUSD pair, which was broken during the upside move.
- In China, the Retail Sales report was released by the National Bureau of Statistics of China.
- The Chinese Retail Sales posted an increase of 10% in May 2016, which was a bit lower than the forecast of 10.1%.
The Aussie Dollar after diving towards 0.7360 vs the US Dollar found support near the 200 hourly simple moving average, which acted as a barrier for the sellers. The AUDUSD pair traded higher, and broke a bearish trend line formed on the hourly chart.
Moreover, the pair is also above the 23.6% Fib retracement level of the last drop from the 0.7504 high to 0.7358 low.
However, the pair is seen struggling near the 50 hourly SMA, which is acting as a resistance for more upsides.
Chinese Retail Sales
Today in China, the Retail Sales report was released by the National Bureau of Statistics of China. The market was expecting the total receipts of the retailed consumer goods to increase by 10.1% in May 2016, compared with the same month a year ago. However, the outcome was a bit lower, as there was a rise of 10%.
On the other hand, the Industrial output released by the National Bureau of Statistics of China posted an increase of 6% in May 2016, which was more than the forecast of 5.9%.
The recent break in AUDUSD was convincing, but the pair needs to break the 50 hourly SMA for further gains.