The Senate and House have reached a deal on the tax bill and they are on track for final voting next week, but the dollar has taken the news in stride. Meanwhile, get updated on the 14 December AUDUSD Technical Analysis.
14 December, GKFX –The data released in China showed the industrial output rose 6.1% y/y in November, beating the estimate of 6.0%. Retail sales came in at +10.2 vs 10.2% expected.
- China industrial production beats estimates
- AUD/USD remains clocks 5-week high.
- Confluence of 50-day MA and 50-week MA breached.
The Aussie dollar, which was already strongly bid on the back of the stellar Aussie jobs data, extended the gains to a 5-week high of 0.7675 levels post-China data release. As of writing, the spot is trading at flirting with 0.7670 (confluence of 50-day MA + 50-week MA).
AUD/USD could extend gains
European desks are likely to join the USD selling party. Hence, AUD/USD could extend the gains to 0.7691 (200-day MA) in Europe. Kathy Lien from BK Asset Management writes,
“the USD could extend its slide over the next 24 to 48 hours. U.S. retail sales are due for release on Thursday and while economists are looking for a pickup in demand, unless the increase is very significant on a core basis (ex-autos and gas), the positive impact on the dollar post-FOMC could be limited. The Senate and House have reached a deal on the tax bill and they are on track for final voting next week, but the dollar has taken the news in stride.“
14 December AUDUSD Technical Analysis
A move above 0.7691 (200-day MA) would open up upside towards 0.7730 (Nov. 2 high) and 0.7733 (Oct. 6 low). On the other hand, a break below 0.7648 (23.6% Fib R of Sep. 8 high – Dec. 8 low) would expose 0.7625 (session low) and 0.76 (zero levels).
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