April 17, OctaFX – The Australian dollar rose sharply after China released its first-quarter economic data. The country’s economy increased by 6.4% in the quarter, topping the analysts' forecasts of 6.3%.
On a MoM basis, the country’s economy rose by 1.4%, which was in line with expectations. In addition, industrial production in March rose at an annual rate of 8.5%, which was higher than the expected 5.6%. In February, production rose by 5.3%. The unemployment rate declined to 5.2% from the previous 5.3% while the retail sales increased by 8.7%.
AUDUSD technical analysis
Yesterday, the AUDUSD pair declined sharply after dovish minutes from the RBA. In the afternoon session, the pair rose after investors digested the report and its findings. Today, it continued moving upwards because of the impressive Chinese economic data.
It reached a high of 0.7205, which is the highest level since February 19. On the four-hour chart, the pair has been on an upward trend since March 8. The price is above the 25-day and 50-day moving averages. The Relative Vigor Index (RVI) has started moving upwards while the ADX has moved lower to the current level of 17. The pair will likely be moving upwards to test the next resistance of 0.7220.
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