China data beats estimates, but fails to lift AUD/USD

China National Bureau of Statistics data released today showed the world’s second largest economy expanded 6.9% y/y in the first quarter of 2017. This was slightly higher than the previous quarter’s GDP of 6.8%.

The uptick in the annualised GDP failed to lift the AUD/USD pair, leaving the currency pair largely unaffected around 0.7585 levels.

A sharp rise in the March industrial production and retail sales figures also failed to boost the Aussie. Moreover, the increasing tension between US and North Korea is keeping the AUD and other risky assets on the back foot.

Meanwhile, there is growing realization in the market that Iron Ore has a very tough act to follow in 2017. The commodity faces a challenge as supply concerns re-emerge. The drop in the value of key export is also weighing over the Aussie.

AUD/USD Technical Levels

A break above 0.76 (zero levels) would expose 0.7621 (50-DMA), above which the spot could target 0.77 (trend line hurdle). On the other hand, breach of support at 0.7567 (session low) could yield a drop to 0.7555 (200-DMA) and 0.7524 (100-DMA).