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AUD is still supported by China

Australia remains closely linked to China and the despite the threats on beef exports, AUD benefits of any good news coming from Chinese economy. This morning, official data showed that China's industrial production rose 3.9% on year in April (vs +1.5% expected) while retail sales dropped 7.5% (vs -6.0% expected).

From a technical point of view, on a daily chart, AUD/USD remains supported by a rising trend line and stands above its 50-day moving average (in blue) as the daily RSI stands within its buying rea. Readers may therefore consider the potential for further advance above horizontal support at 0.6250. The nearest threshold would be set at horizontal resistance at 0.6570 and a second one would be set at set at 0.6685 in extension.

Source: TradingView, GAIN Capital

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